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London (pte014/18.02.2003/11:15) - Electronic information group Reuters http://www.reuters.com has announced plans to cut up to 3,000 jobs in an effort to offset losses booked in 2002, as reported in the Financial Times.
After recording losses of up to 493m pounds last year in connection with declining subscriptions, the group has forecast a further 9 per cent drop in subscription revenues for the first quarter of 2003. As revenues from subscribers make up 90 per cent of the group's turnover, this could have a serious effect on Reuters' core business.
With a new strategy to streamline the group by cutting jobs, Reuters hopes to save up to 440m pounds over three years. The number of employees is to be reduced from 16,000 to 13,000 by the end of 2005.
In addition to personnel cuts, Reuters has said it wants to improve efficiency by delivering its core market news and data services over a lower cost base and generally improving its delivery services.
Reuters CEO Tom Glocer is quoted as saying: "By concentrating on Reuters core strength as an information supplier, we can protect and grow market share."
The cost of restructuring is etimated at 340m pounds.
Reuters shares fell almost 8 per cent to 141.5p this morning.
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