Reuters To Cut 650 Management Jobs

By: (AP) News and information provider Reuters Group PLC said Thursday it would cut 650 management jobs, a move aimed at saving $150 million a year.

Reuters said the elimination of senior and middle-level posts around the world would "reduce organizational complexity by removing layers of management."

Reuters, which employs about 19,000 people worldwide, has shed 1,800 jobs in the last year as part of a campaign to streamline operations and reduce costs.

The company said the latest cut would save $150 million annually in addition to $350 million in savings previously announced for 2003.

Reuters, which provides news and data services to the media and financial markets, has been hurt by the global economic downturn. The Sept. 11 terrorist attacks also had a major impact on the company, costing about $24 million in lost revenue.

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

In February the company announced a pretax profit for 2001 of $235 million, down from $979 million a year earlier.

"The accelerated cost savings initiatives we announce today will improve our 2003 margin beyond 12% in advance of a general market recovery," Chief Executive Tom Glocer said in a statement.

Reuters shares fell 4.5%, to 388 pence, on the London Stock Exchange Thursday morning.