Thomson Reuters announces 3,000 job cuts as earnings dive

Thomson Reuters announced plans Tuesday to slash a further 3,000 jobs as the global news and information company seeks to streamline its business and cut costs.

The layoffs are in addition to the 2,500 announced earlier this year.

"These are tough decisions that we do not take lightly. But I thoroughly believe these steps are necessary to position our organization to thrive for years to come,” Thomson Reuters Chief Executive James Smith was quoted as saying.

The job losses, which represent about 5 percent of the company’s workforce, will be mainly in the financial and risk business unit. Thomson Reuters is attempting to “reduce product and operational complexity” across the company. 

The announcement was contained in the Thomson Reuter’s third-quarter earnings report, which showed net profit fell 37 percent from a year ago to $283 million amid fierce competition from Bloomberg and Dow Jones.

The good news is the company’s net sales grew for the first time in more than two years. 

Revenue from ongoing businesses rose 2 percent to $3.07 billion – not much, but a good sign. 

Thomson Reuters also joined a growing list of companies this earning season to announce a share buyback. It plans to repurchase up to $1 billion worth of stock by the end of 2014.