Thomson Reuters prepares to shed staff after merger

by Jacquie Bowser Brand Republic 12-May-08, 11:00

LONDON - Thomson Reuters, the newly merged global news agency, could lay off thousands of employees as early as this week, according to reports.

The group, formed through the merger of UK-based Reuters and Canadian news provider Thomson, set a deadline of May 19 to reveal an extensive redundancy programme, but it is believed that details will be released this Friday, according to insiders quoted by The Observer.

More than 5% or 2,500, of the company's 50,000 staff could be made redundant as part of the group's plans to generate £375m in cost savings over the next three years.

The major job cuts, including positions held by journalists, technicians, salesmen and middle managers, are expected to be made in Europe, where the two companies have a large presence.

Thomson agreed last May to acquire Reuters, with a cash-and-stock offer that valued the 157-year-old news agency at £8.7bn. Tom Glocer, formerly Reuters chief executive, is now chief executive of the entire Thomson Reuters group.

Comments

Keith Geddes - 12/05/2008

Hmm.. middle management. Depends how productive they are, but.. no real surprises. Dont most production staff know what to do without being told these days? Any merger now causes major change. Watch your backs. I`m so glad I`m out of it now.