NEW YORK, Feb. 13 (UPI) -- Mass media company Thomson Reuters announced in New York Wednesday it intends to eliminate 2,500 jobs this year to trim costs.
The workforce reduction amounts to about 4 percent of its 60,000 employees worldwide, with a majority of the cuts coming in its finance and research division, Fox News reported. The company said it expects to spend about $100 million on severance costs, mostly in the first quarter, the network said.
Thomson Reuters said it posted a fourth-quarter operating profit of $658 million, up 2 percent from $646 million a year ago, on revenue of $3.36 billion, up from $3.31 billion in the year-ago period. Its full-year revenues were up 3 percent at $12.9 billion.
Chief Executive Officer James C. Smith said in a release posted on the company website 2012 was "a watershed year" in which the Thomson Reuters "achieved our targets for the full year for revenues, profit and free cash flow."
"Given the headwinds we faced in 2012, that performance reaffirmed just how strong this business really is," he said.
"I said last year that our journey would entail a multi-quarter turnaround; we are halfway through that process," he said. "We laid the groundwork for future success with solid improvements in product quality, customer service and execution capabilities.
"We enter 2013 with more confidence and a much stronger foundation."