Thomson Reuters plans to lay off 32,000 employees by 2020
Thomson Reuters said on Tuesday it would cut its workforce by 12 percent by 2020, eliminating 3,200 employees, as part of a plan to streamline activity and cut costs.
The news and information provider, which completed the sale of a 55 percent stake in its financial and risk services unit to the Blackstone Group, announced a one-day job cut for investors in Toronto, which outlined its future strategy and growth plans.
As part of the simplification process, Thomson Reuters said it plans to cut its global offices by 30 percent to 133 by 2020.
The company declined to mention where the jobs would be reduced.
Shares in Thomson Reuters rose 1.8 percent in early trading in Toronto and New York.
After the Blackstone deal, Thomson Reuters earns about 43 percent of its revenues from the legal services unit, while 23 percent of its sales are from corporate customers and 15 percent from its tax unit.
Reuters is contributing only 6 percent of sales, but Thomson Reuters CEO Jim Smith said it was still a key part of the company under the new leadership of Michael Friedenberg, who joined the company on Monday as head of news and media operations.
"We think he can make Reuters a bigger part of our future growth story," Smith said.
Thomson Reuters aims to reduce its capital expenditure to between 7 and 8 percent of revenue in 2020, from 10 percent now.
The company also aims to achieve annual sales growth of 3.5-4.5 percent by 2020, excluding the impact of any acquisitions.
Thomson Reuters has allocated $ 2 billion of Blackstone's $ 17 billion deal to buy in order to contribute to the growth of its legal and tax units.
Thomson Reuters has risen about 40 percent since May, taking advantage of a $ 10 billion share buyback.