Thomson Reuters Plans 'Relentless' Cost Cutting In Downturn, Still Optimistic
This story was written by Patrick Smith.
Thomson Reuters (NASDAQ: TRIN) has promised to "relentlessly" cut costs as the global economic begins to bite its clients' businesses and, with them, its own. Devin Wenig, CEO of the markets division that includes Reuters Media and Reuters.com, yesterday told staff, in a frank internal memo obtained by paidContent:UK: "Many of our big customers are struggling and there is talk of a global recession. We are in a period of unprecedented change that seems to be unfolding in real time The changes we are witnessing are global and deep and this is very different to a cyclical downturn."
Wenig admitted TR's top 25 large accounts are under pressure. His solution? "The short-term tactical response to this tough market is that we will be relentless about costs, efficiency and challenging the status quo. I don't apologize for that; every dollar we can drive out of things like travel, entertainment, research that no-one reads, information requests that are not critical and meetings that don't need to happen, is another dollar we can invest in the critical sales, product, news or service initiatives that will really drive this firm forward."
A spokesperson refuted to us reports elsewhere today that the memo adds up to further job cuts on top of the 650+ confirmed in May from merger "synergies", saying the company is committed to saving $1.2 billion (700 million) over the next three years. Wenig began a recruitment freeze last month. So no new numbers here: just a reminder that Wenig & Co. are taking no prisoners when it comes to cost saving in uncertain times. Read more at paidContent:UK
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By Patrick Smith