Thomson Reuters to Cut 3,000 Jobs

Market data products and systems vendor Thomson Reuters will be cutting 3,000 jobs, mostly from its Financial and Risk division, according to an internal memo that emerged at the same time as the company’s reporting of third quarter results.

The financial results include a $350 million charge that will facilitate the layoffs for a division that had positive sales in the third quarter for the first time in over two years, say company officials. Yet the layoffs are in line with the company’s ongoing efforts to transform and simplify its offerings and operations.

The company, with 60,000 employees across 100 countries, foresees “ample opportunities to simplify” operations, strengthen its value proposition and drive organic growth, says Jim Smith, president and CEO of Thomson Reuters, during a results presentation with analysts. “We remain confident in the overall trajectory of the company,” he says.

Overall, revenues from the company’s ongoing businesses grew 2% (before currency) from the prior-year period to $3.1 billion, reflecting a tough market for Thomson Reuters’ offerings. Stephane Bello, chief financial officer for Thomson Reuters, adds that despite difficult market conditions caused by the Great Recession, the company has “turned the corner in our finance business.”

Franciscan Alliance cutting 925 jobs

Franciscan Alliance, which last month cut more than 100 jobs at its two south suburban hospitals, is laying off 275 employees and cutting 650 other full-time positions across Indiana, the health system said yesterday.
In September, Mishawaka, Ind.-based Franciscan said it would cut about 125 positions at two of its 13 hospitals, Franciscan St. James-Olympia Fields and Franciscan St. James-Chicago Heights. Those reductions came four months after Franciscan said it was seeking a buyer to take over the two struggling hospitals.

The latest in the series of restructurings will reduce Franciscan's workforce by 1.4 percent, according to the Associated Press. The workforce reductions will come through a combination of retirements, other attrition and reduced hours, AP reported.

The Catholic health care system cited economic pressures, including reduced reimbursements, new payer models, the federal health care overhaul and shifts from inpatient to outpatient care.
“Franciscan Alliance has not been immune to such pressures and has found it necessary to align staffing levels to reflect lower patient volumes and reduced industrywide reimbursements brought on by reforms associated with the Affordable Care Act,” Kevin Leahy, Franciscan's president and CEO, said in a news release.

“Recent trends and the new law are challenging health care providers to manage the continuum of care for patients more efficiently and effectively to ensure the same quality outcomes at reduced reimbursement levels,” Mr. Leahy said. “Our challenge is to staff our campuses in line with the reduced inpatient volumes that are a byproduct of recent health care trends and the new law.”

$500 MILLION IN COST CUTS
Franciscan said it must cut its costs by 15 to 20 percent, or as much as $500 million, over the next three years to remain viable.

Franciscan's remaining 19,000 employees will see cuts in benefits next year, including no salary increases for management, the elimination of a 1.5 percent employer match of their 403(b) retirement savings program, and higher employee contributions for health insurance, the system said. Employees not vested in the pension plan by Jan. 1 will get a new defined-benefit pension program.

The Indianapolis Business Journal reported Franciscan's 13 hospitals in Indiana and Illinois pulled in revenue of $2.5 billion in 2012, generating a net gain of $110 million, excluding a special accounting charge. However, its operating profit margin decreased to 4.5 percent from 5.2 percent the previous year. Franciscan ranks second in revenue among Indiana-based hospital systems, behind IU Health.
Indianapolis-based IU Health cut 935 positions, or 2.6 percent of its workforce, on Oct. 1. Indianapolis-based St. Vincent Health announced in June it was laying off about 865 workers, or 5 percent of its workforce.
Franciscan operates hospitals in Crown Point, Michigan City, Crawfordsville, Lafayette, Carmel, Indianapolis, Mooresville, Hammond, Dyer and Munster.

MillerCoors to fire 200 companywide

MillerCoors announced Monday that it is firing 200 workers and eliminating another 160 positions that are unfilled. The cuts represent 6 percent of its salaried workforce and 2 percent of its overall workforce.

The Chicago-based company said it believes the moves will "allow more financial flexibility to help the company meet long-term investment requirements in its brands and breweries while at the same time achieve its operating margin and profitability goals."

Alcatel-Lucent to announce cut of 15,000 jobs

PARIS — Alcatel-Lucent SA will slash 15,000 jobs, people familiar with the matter said, the latest step in the telecommunications-equipment maker’s plan to reshape itself as a smaller company focused on a handful of core businesses.

The money-losing company plans to announce Tuesday that it will cut the jobs, largely in older technologies such as second- and third-generation wireless equipment, the people said. The company also plans to add roughly 5,000 new jobs in growth areas, such as Internet-routing, one of the people added. The announcements will be part of a morning union meeting.

In total, the cuts will involve roughly 15% of the company’s worldwide workforce, with Germany the hardest hit and France touched significantly as well, one of the people said. Another person familiar with the matter said the company could cut 900 jobs in France, with an additional 900 to be shifted elsewhere in the company or to subcontractors.

Alcatel-Lucent FR:ALU +0.38%    ALU +0.52%   had 72,344 employees as of Dec. 31, including 9,483 in France, according to a securities filing.

Chicago : JPMorgan to cut 145 mortgage employees

JPMorgan Chase & Co. will lay off 145 mortgage employees in its Chicago and Downers Grove offices. The layoffs begin Nov. 22, spokeswoman Christine Holevas said. She had no further comment.

JPMorgan's cuts were disclosed in a monthly state report in which the bank said "restructuring" was the reason for the layoffs. Large banks with significant mortgage operations in recent months have been laying off employees all over the country. Borrower demand to refinance mortgages has dramatically declined due to higher interest rates since the early summer.

Merck cuts 8,500 more jobs

US pharmaceutical giant Merck has announced it will cut 8,500 further jobs in an attempt to cut $2.5bn (£1.5bn) from its costs by 2015.

The company's shares rose 2.35% to $48.73 in New York trading after it announced the cuts.

The new losses, combined with 7,500 job cuts announced in 2011 and 2012, amount in total to 20% of its workforce.

Merck said it will be shifting its focus to areas it sees as high growth, such as cancer treatment.

'Difficult decisions'
It is also pulling products in late-stage trials it estimates will not be so successful, and licensing other products to alternative companies.

The New Jersey-based company anticipates its costs will be reduced by $1bn at the end of 2014, from cutting marketing, administrative, research and development operations.

Kenneth Frazier, chief executive at Merck, said: "While these actions are essential to ensure that Merck can continue to fulfil its mission into the future, they are nevertheless difficult decisions because they affect our dedicated and talented colleagues.

"We appreciate the contributions of all our employees, and we will support them during this time of transformation."

Merck will also be selling property in New Jersey to help save costs.

Alex Arfaei, analyst at BMO Capital Markets, said he was concerned Merck was putting too much faith in a handful of experimental drugs.

He said these include a new type of cancer drug that boosts the immune system, a treatment for Alzheimer's disease, improved versions of its cervical cancer vaccine and its treatment for hepatitis C.

"Overall, today's announcement makes us more cautious about the potential of Merck's pipeline" of experimental drugs, Mr Arfaei said.