Reuters orders cut-backs to save costs
Wednesday 17 May 2023
Reuters has imposed immediate controls to cope with higher than expected costs due to staff expansion, coverage of the war in Ukraine and historically low attrition.
Travel will be limited to critical news gathering and have to be approved in writing, in advance, by a global managing editor and general manager.
International assignments and permanent transfers will be postponed for a few months and there will be no new hiring until later in the year.
Training will go online. Any that needs to be in-person will be pushed back to later in the year.
The controls are temporary, editor-in-chief Alessandra Galloni told editorial leaders.
Last year, Reuters newsroom grew by more than 200 staff, the biggest expansion for well over a decade.
“That growth - including new finance and markets reporters, the expansion of the Reuters India financial file, and the conversion of freelance colleagues to staff in locations around the world - has made us a stronger newsroom and led to a better news file,” she said.
“However, our costs are running higher than expected this year due to staff expenses, coverage of the war in Ukraine and historically low attrition. This requires us to manage our expenses carefully over the next few months in order to meet our budget targets by the end of the year.”
Opportunities for overtime will be limited where appropriate, spending on contractors will be reduced, and staff will be encouraged to take accrued vacation and leave time by the end of the year.
“We are taking these precautionary measures now in order to position ourselves on a sounder footing as we head into the second half of the year,” Galloni said. “We are counting on all of you to do your part by prioritising coverage and helping manage costs during this period.” ■