Thomson Reuters today officially filed WARN Act notifications of significant reductions in workforce that are being announced this week affecting a total of several thousand workers in Michigan, Minnesota, New York, New Jersey, and smaller numbers in other states. The company warned additional filings are forthcoming this month as it significantly downsizes its head count.
The company announced Tuesday its office in Rochester, N.Y. was being closed and company officials confirmed that significant additional cuts were planned this week to reduce the company's domestic and international head count and real estate portfolio.
Rochester Chamber of Commerce President Bob Duffy says he expects the closure of Thomson Reuters' offices in Rochester will impact about 400 to 425 workers. Duffy was critical of Thomson Reuters' management for announcing the layoffs in group settings, where emotions occasionally ran high, according to workers who attended the announcement. He also criticized the company for its silence in the community. Thomson Reuters did not contact the Chamber of Commerce or give a heads-up before the announcement. Rochester city officials confirmed Thomson Reuters did not provide any pre-notification, despite the company's intention to sell its local real estate.
"We heard rumblings over the years, but nothing concrete," Duffy, the former mayor of Rochester, said. "We still have not had any direct contact."
Thomson Reuters plan to focus its business and legal services divisions in just five office locations in Minnesota, Toronto, Texas, Michigan, and Bangalore, India. But workforce reductions are also planned in other locations as part of what the company is calling a strategic "reset and transformation."
Separately, Thomson Reuters announced additional share buybacks and a dividend to shareholders as an incentive after it successfully completed selling 55 percent of its Financial & Risk (F&R) unit to private equity firm Blackstone Group LP.
With a reduced workforce, the news and information provider is seeking Wall Street approval of its intentions to invest in additional merger and acquisition activity, using cost savings to back a $2+ billion deal fund to acquire additional companies.
-- Bloomberg terminal, Intelligence