Thomson Reuters media group to nix thousands of jobs

The Canadian news provider announced a number of cost-cutting measures as shares reached a record high. The company will also close 30 percent of its global news offices.

Canadian media firm Thomson Reuters said on Tuesday that it was slashing 3,200 jobs in the next two years. The move was announced as part of a raft of cost-cutting measures, which includes a new focus on its tax and legal businesses.

The company also plans to close 30 percent of its global locations, reducing the number to 133 offices by 2020.

The information and news provider recently completed the sale of a 55-percent stake in its Financial & Risk unit to private equity firm Blackstone Group.

Thomson Reuters has not confirmed which parts of the company will be up on the chopping block, but Co-Chief Operating Officer Neil Masterson said that staff had already been made aware of 90 percent of the cuts.

Shares high, news to stay

Shares in the company hit a historical high after the news, rising as much as 3.2 percent on Tuesday. Shares have rallied by a total of 40 percent since May.

Reuters News service amounts to only about 6 percent of Thomson Reuters' sales revenue, but the company insists it is still a vital art of the business.

"We believe he can make Reuters News an even greater part of our growth story going forward," said CEO Jim Smith.

The company's news sector just got a new leader on Monday, when Michael Friedenberg joined as president of its news and media operations.

es/jm (Reuters)

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