Thomson Reuters to cut 12% of its workforce to reduce costs
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Thomson Reuters, the global news and corporate information company, announced Tuesday at an investors conference in Canada that it will cut 3,200 jobs to reduce costs and to streamline its business.
Why it matters: The company is restructuring to focus on its legal and tax business. It sold a 55% stake of its Financial & Risk practice to The Blackstone Group earlier this year for a buyout deal worth $20 billion.
The details: Co-COO Nick Masterson said that staff had already been informed about 90% of the planned cuts, per Reuters.
- The company said it plans to reduce its number of offices around the world by 30% to 133 locations by 2020.
- It hopes to streamline operations by cutting the number of products it sells and instead hopes to increase sales numbers overall by selling a higher volume of its existing products to customers.
- Reuters News, which makes up only a small part of the business, will remain.
Between the lines: Yahoo reported last month that Reuters set aside $2 billion to focus on strategic acquisitions that would bolster its legal and tax business.
- Reuters stock was up nearly 4% after the announcement — an all-time high.