/ 16 October 2001

REUTERS TO AXE ANOTHER 500 JOBS

THE British media and financial information group Reuters unveiled plans on Tuesday to axe 500 jobs in a bid to cut annual costs by a further 30-million pounds (48-million euros, $44-million). The job cuts are in addition to 1 100 staff laid off in July, Reuters said, and will help it increase savings next year to a total of 170-million pounds. The new job losses will cost the company 40-million pounds in one-off severance payments. Reuters said its overall performance was steady over the quarter, with revenue growing by four percent to 920-million pounds. The Reuters Financial division put in a strong performance, but trading conditions were weaker at subsidairies Reuterspace and Instinet. Reuterspace revenue declined one percent due to high cancellations of online media services by Internet clients. Instinet’s revenue fell one percent in the third quarter compared with the same period last year. Glocer said that the company’s admirable performance considering the current market climate had been “overshadowed by the loss of six members of the Reuters Group in the attacks on 11 September.” Reuters stock rose 1,3% to 658,5 pence in London. – Sapa-AFP