Reuters revamps IS strategy after record £493m loss

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Reuters revamps IS strategy after record £493m loss

Nick Huber
Reuters is to shake up its information services strategy to help it achieve annual cost savings of £440m by the end of 2005.

The electronic information group, which this week reported a record loss of £493m and announced a further 3,000 job cuts, has been hit by harsh trading conditions and a slump in City demand for its information services, such as trading terminals and market data feeds.

The five-point strategy includes investment in content to enhance Reuters new product lines; a move to a single technology platform to deliver products; investment in analytic software, including risk management tools, and building on the success of its instant messaging service.

Reuters has already shed around 2,500 jobs in the past two years and last year cut IT contractor rates by up to 20%. Shortly afterwards Greg Meekings, who was appointed chief information officer last September, said he was considering outsourcing some of Reuters' IT services.

IT departments within the financial services sector have been hit particularly hard by the economic downturn as firms have squeezed technology budgets to cut costs and put new projects on hold.

Both Reuters and rival Bloomberg are keen to bolster revenues by offering a wider range of information services, diversifying away from their traditional desktop terminal businesses.

Reuters said that more than 225,000 financial professionals in 116 countries have been registered for its new instant messaging service, Reuters Messaging (RM).


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