Thomson Reuters to cut 3,000 jobs
News and financial services company to restructure after disappointing earnings
Thomson Reuters said Tuesday it is getting rid of 3,000 jobs, as it expects to record $350 million US of accounting items related to cost-cutting.
The company, which provides professional information and news services, said the job losses represent about five per cent of its total workforce, and are mainly in the financial and risk business unit, which accounts for more than half of its total revenue.
The jobs are in addition to cuts of about 2,500 announced earlier this year.
The accounting charge is related to an accelerated cost-saving and simplification program, said Thomson Reuters Inc. .
The charge, which will be reflected primarily in the fourth quarter with a smaller amount to be recorded in 2014, was announced along with Thomson's third-quarter results.
Thomson Reuters also announced that it will spend up to $1 billion US on stock buybacks by the end of 2014 and contribute $500 million to its U.S. and U.K. defined benefit pension plans in the fourth quarter.
During the third-quarter that ended Sept. 30, revenue from the company's financial and risk business unit was down compared with a year ago, offsetting gains in Thomson's smaller units.
Thomson Reuters reported its total revenue for the three months fell to $3.08 billion from $3.18 billion, under standard accounting and before currency adjustments.
Net income under standard accounting dropped to $283 million from $453 million. Diluted earnings under standard accounting was 33 cents per share, down from 53 cents per share a year earlier.
Adjusted earnings were 48 cents per share, flat with a year earlier and four cents better than analysts expected.
The 13 estimates compiled by Thomson showed analysts were looking for 44 cents per share of adjusted earnings in the third quarter and 26 cents per share of net income under standard accounting.
Its shares advanced $1.06 or 2.84 per cent to $38.38 after hitting a fresh 52-week high of $38.48 on the Toronto Stock Exchange.