Reorganization At Reuters Could Shift Some Marketing Out Of New York

Following persistent and occasionally conflicting rumors that moves were afoot, Reuters America president Brian Vaughan last week told staff that many editorial, marketing and administrative positions now centered at RAM's New York headquarters would devolve to a district level. Some 300 employees are currently located at Reuters' 1700 Broadway, New York, offices, of which approximately 120 are editorial.

"No final decisions have been made, but most of the 300 will move to other offices in New York City," Vaughan said last week in response to daily newspaper reports he describes as "highly inaccurate."

Two of the vendor's districts are located in New York City -- Downtown and Midtown.

As part of an ongoing reorganization, profit-and-loss responsibility for certain products -- as well as the marketing personnel supporting those products -- could be shifted to Reuters districts. For example, commodities and options products could be handed to the Chicago-based district. However, the plans are in the early stages at best.

Although Reuters America will continue to retain New York City as its headquarters, the vendor is now hunting for an alternative -- and smaller -- headquarters building in Manhattan. The move to new digs could come in the second or third quarter of 1993.

"The move is in line with the company's belief that day-to-day business activities ought not to be centered at a corporate headquarters unit, so much as at the business unit level," says a Reuters spokesperson.

Sources say that although the end result of the process remains uncertain, many Reuters employees anticipate that the central headquarters group would be reduced from the current staffing level of approximately 180 to about one-third that.

Many of those whose positions are decentralized would remain in New York, while others would be invited to relocate to other cities. Sources say that as of late last week most headquarters staff were still uncertain where they might be shifted.

The net effect for Reuters America could well be a reduction in head count, and not only by the attrition of those unwilling to move. In addition, some primarily administrative positions could be eliminated altogether.

"For those few people whose jobs may be eliminated, we are committed to letting them know this as quickly as possible," said Vaughan in the memo to staff.