Reuters reports record loss, to cut nearly 3,000 jobs

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London--Reuters Group plc, the world's largest provider of news and financial information, Tuesday reported a record loss and said it would cut nearly 3,000 jobs as part of a new, three-year turnaround strategy.

The London-based company reported a net loss of $631 million for 2002, the biggest in its 151-year history. It also forecast recurring revenues, which account for 90% of core sales, will fall by at least 9% in the first quarter of this year and "somewhat" more in the second. Reuters had earlier forecast first-half recurring revenues would fall 7% to 9%.

The announcement of almost 3,000 new job losses comes on top of about 3,200 job cuts over the past two years, as the company cuts costs in an effort to protect profits from falling revenues. Under the three-year plan, Reuters will step back from pure technology consulting and stop selling non-Reuters technology programs.

Reuters also said it was buying Inc., which provides profit estimates and other information on more than 25,000 companies globally, for about $195 million.

--Matthew Schwartz

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