Thomson Reuters to cut workforce by 3,200 or 12 percent by 2020

FILE PHOTO: The Thomson Reuters logo is seen on the company building in Times Square, New York October 29, 2013. REUTERS/Carlo Allegri/File Photo

TORONTO (Reuters) – Thomson Reuters Corp (TRI.TO) said on Tuesday that it will cut its workforce by 12 percent by 2020, axing 3,200 jobs, as part of a plan to streamline the business and improve operating efficiencies.

The news and information provider, which completed the sale of a 55-percent stake in its Financial & Risk (F&R) unit to private equity firm Blackstone Group LP (BX.N), announced the cuts during an investor day in Toronto, in which it outlined its future strategy and growth plans.

Thomson Reuters said that it had set a target to reduce its capital expenditure to between 7 percent and 8 percent of revenue in 2020 from 10 percent currently.

The company also set a target to grow annual sales by 3.5 percent to 4.5 percent 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 have risen by nearly 40 percent since May, benefiting from the company buying back $10 billion worth of shares.

Reporting by Matt Scuffham; Editing by Nick Zieminski

Tagged ,