Reuters, the news and financial information provider, will move much of the core of its operation to India in an attempt to save money. It is not yet clear what affect this will have on jobs, but units that may be involved include 350 individuals in Tiverton in south-west England, 65 in Edinburgh Scotland, and approximately 600 in New York and White Plains in the US, Singapore in East Asia, and other offices worldwide. The new location in India will most likely be in Hyderabad or Bangalore. According to a spokeswoman for Reuters, the company expects that there will be some new capabilities at that site and that some existing functions will be moved to the new location. Reuters has made no formal announcement regarding the move and will not have further information until mid-September.
Reuters is currently in the midst of a project entitled Fast Forward, whereby it plans to cut 3,000 jobs and expenses. It has been reported that any jobs lost as a result of the move to India would be included in the 3,000. The Fast Forward program is an attempt to keep up with the burgeoning sales of competitors Bloomberg and Thomson Financial. Although subscription sales were down 10% in 2002, Reuters was profitable in the first six months of 2003. The company anticipates another two years of struggle.