Reuters to cut 3,000 jobs after profit drops almost 40%

Thomson Reuters has announced that it is to cut 3,000 jobs in an effort to reduce costs, after reporting that profit was down 37% in the third quarter.

With net income currently at $283 million, due in part to a lower tax rate and businesses that have been divested, analysts have said that the company still has its work cut out.

“[Reuters] are doing all the right things, but the environment is not cooperating with them,” said Evercore Research analyst Doug Arthur.

Of the company’s 60,000 workforce, 2,500 have already been made redundant this year.

“These are tough decisions that we do not take lightly,” said Reuters’ chief executive Jim Smith. “But I thoroughly believe these steps are necessary to position our organisation to thrive for years to come.”

Smith added that the company needs to “better align resources” behind growth opportunities and “attack internal bureaucracy once and for all.”

Following the announcement, Reuters expects 2013 revenue to rise at a low single-digit percentage rate.