Thomson Reuters will cut 650 technology, content and back office operations jobs over the next year.
The move is part of the newly merged media and financial data firm’s attempts to save $750 million (£382 million) over the next three years by removing overlapping jobs and simplifying systems. It is also cutting 140 editorial jobs.
Thomson completed its acquisition of Reuters last month for £8.7 billion. It has other savings programmes in place, called Thomson Plus and Core Plus, which aim to save a further $460 million (£235 million).
Under the Thomson Plus programme, the company is implementing an SAP enterprise resource planning system across its business, and is creating shared service centres. In the last quarter to 31 March, it spent $34 million (£17.3 million) on consultants for SAP and on cutting jobs at its Thomson Scientific division.
The company hopes to achieve savings of $160 million (£82 million) per year through improved efficiency, procurement, supply chain, financial reporting, and the consolidation of financial processes.
Some of the savings will come from the establishment of an offshore location in India, which handles some of the company’s finance functions.
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Last year, Reuters signed a £500 million deal with Fujitsu to run most of its internal IT infrastructure including desktop PC maintenance and email services for 17,500 employees. Reuters said at the time that it expected the deal to reduce its annual IT costs by between 20 and 30 per cent.
It has also has an eight year deal with BT to upgrade its wide area network.
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