(AP) Reuters Group PLC said Tuesday it would shed an additional 500 jobs, or about 3% of its work force, as it accelerated its cost savings effort in the wake of the global economic slowdown and terrorist attacks.
The job cuts — on top of 1,100 announced in July — were announced as Reuters reported its third-quarter revenue rose 4% to 920 million pounds ($1.35 billion) from 888 million pounds a year ago.
The company did not report its earnings for the July-September quarter.
Despite the increase for the latest quarter, Reuters said revenue from some of its businesses are expected to grow slower than expected for the second half due to the economic slowdown and the Sept. 11 terror attacks in the United States.
Underlying subscription-based revenue in Reuters Financial, for example, is now expected to grow between 1% and 2% in the second half, compared to a July forecast of 3% growth.
The worsening conditions led directly to the job cuts, an acceleration of a cost-saving program unveiled in July, it said. The cuts, which represent 3% of 17,265 people employed at the end of last year, will be made globally and across the spectrum of Reuters’ subsidiaries, the company said.
“We are taking the tough decisions needed to improve our operation margins in the near term and position ourselves for stronger growth when the market recovers,” Reuters chief executive Tom Glocer said in a statement.
Underlying revenue, which excludes the impact of acquisition, disposals and currency movements, increased 1% in the third quarter.
Total revenue in Reuters Financial increased 6% to 674 million pounds ($991 million); Reuters Information grew 5% to 461 million pounds ($678 million), and Reuters Trading Solutions grew 9% to 213 million pounds ($313 million), the company said.
Revenue in Reuters’ electronic brokerage business Instinet fell 1% to 187 million pounds ($275 million) in the third quarter compared to the same period last year. Underlying revenue was down 5%.
An estimated 12 million pounds ($17 million) of potential revenue for Instinet was lost when U.S. stock markets were closed for four days following the Sept. 11 attacks.