Reuters is preparing to shift most of its core financial data business to India in a move that is expected to trigger widespread job losses across the global information group. The company yesterday admitted that plans to develop products in new offices at Hyderabad and Bangalore would lead to job cuts elsewhere. It has not revealed where the cuts will fall, although the 300 staff at Reuters’ office in Tiverton, Devon, and another 65 in Edinburgh are at risk.
A further 600 staff worldwide, including in the US and Asia, also face an uncertain future. Other large firms such as BT have opened call centres in India, where the cost of employing English-speaking staff is lower. But shifting the core operations of a global corporation is unusual. A Reuters spokeswoman said it was part of a cost cutting programme dubbed Fast Forward which was announced in February. It aims to reduce the workforce to 13,000 by shedding 3,000 jobs over the next two to three years.