Thomson Reuters said on Tuesday it will cut 12% of its workforce by 2020, axing 3,200 jobs, as part of a plan to streamline the business and improve operating efficiencies.
The Toronto-based group, which in October completed the sale of a 55% stake in its financial & risk division to private equity firm Blackstone, announced the cuts during an investor day in which it outlined its future strategy and growth plans. F&R now operates as a stand-alone business called Refinitiv.
Thomson Reuters said it had set a target to reduce its capital expenditure to between 7% and 8% of revenue in 2020 from 10% currently.
It also set a target to grow annual sales by 3.5% to 4.5% by 2020, excluding the impact of any acquisitions.
Thomson Reuters is looking to support organic growth through acquisitions and has set aside $2 billion of the $17 billion proceeds from the Blackstone deal to make purchases.
Shares in Thomson Reuters, which are traded on the Toronto and New York stock exchanges, have risen by nearly 40% since May, benefiting from the company buying back $10 billion worth of shares.
