Thomson Reuters announced it will reshape its corporate structure for a post-pandemic world, close offices, streamline technology and rely more on artificial intelligence and machine learning.
The company will invest between USD 500 million and USD 600 million over two years to make the transition from a content provider to a content-driven technology company to serve customers increasingly working from home during the COVID-19 pandemic.
Annual operating expenses will be cut by USD 600 million through eliminating duplicate functions and consolidating technology, as well as through attrition and shrinking its real estate. The cost cuts do not involve layoff programmes and divestitures, the company said.
“We look at the changing behaviours as a result of COVID”, said CEO Steve Hasker when the company presented its annual report.
He stressed that professionals working from home or working remotely are much more reliant on 24-7, digital always available information via software and powered by AI and ML (machine learning)”.
”This is an organic growth program, and our experienced team has begun to execute with urgency and rigor. Upon completion, I am confident Thomson Reuters will be a far more streamlined, integrated and agile operating company, and will deliver a best-in-class customer experience, which will drive strong operating and financial results and greater value for our customers and shareholders.”
Revenues increased 2 per cent to USD 1.62 billion and operating profit increased more than 300 per cent to USD 956 million. London Stock Exchange´s USD 27 billion takeover of Refinitiv, of which Thomson Reuters owned 45 per cent, was finalized in January.