Reuters Cuts 200 More Jobs as 2001 Profits Fall

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Last updated at: (Beijing Time) Monday, February 25, 2002

Reuters Cuts 200 More Jobs as 2001 Profits Fall

Reuters Group PLC, the news and financial information provider, said Monday it would cut 200 additional jobs, as the global economic slowdown and fallout from Sept. 11 continued to depress earnings.

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Reuters Group PLC, the news and financial information provider, said Monday it would cut 200 additional jobs, as the global economic slowdown and fallout from Sept. 11 continued to depress earnings.

The job cuts �� about 1 percent of its workforce �� come on top of 1,100 announced in July and another 500 in October. The latest cuts were announced as Reuters released 2001 earnings figures showing a decline in pretax profits.

The news agency said the current trading environment remained "difficult."

Operating profits for 2001, including costs of transforming its business, fell to $543.9 million from $667.4 million the year before. Bottom-line pretax profits �� which also include losses on investments �� fell to $224.4 million, compared with $932.9 million in 2000.

Reuters said the Sept. 11 attacks had a major impact on the company, costing about $24 million in lost revenue. Its lost assets in the World Trade Center were $14.2 million.

The company last October outlined a five-year plan to overhaul its business and increase revenues.

"We undertook a sweeping reorganization of the company into four customer segments and related global content, service and development units to serve our customers better," executive Tom Glocer said in a statement.

Glocer said the group had completed its acquisition of Bridge, the North American equities information business, and floated a minority interest in Instinet, the electronic brokerage.

The job cuts totaling 1,800 are being made worldwide. More than 1,000 staff had left by the end of December 2001 and the remainder will leave this year, the company said. The company employs 20,700 people worldwide.

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