Reuters Moves To Decentralize North American Operations

Reuters Holdings PLC is reorganizing its North American operations in a bid to offer a more localized service to clients. Although the company says the move is a continuation of the decentralization strategy it set in 1985, the reorganization will reduce the number of North American operating regions from five to two.

The reshuffle, with an effective date of January 1, 1990, was ordered by Brian Vaughan, president of Reuters Information Services Inc., Reuters' chief operating company in North America. Reuters says the move is aimed at eventually creating a number of "districts" -- profit centers of varying sizes from which the company will service existing clients and seek new business.

Under the reorganization, North America will be divided into two regions: the New York area and the rest of North America. Reuters currently divides the continent into five regions: New York, eastern, central and western U.S., and Canada. The latter four will remain as sub-regions. The district profit centers envisaged by Reuters will exist within these sub-regions.

William O'Shea, managing director of Reuters Singapore, will become senior vice president in charge of the New York region. Bruce Masterson, currently head of Reuters' central U.S. region, will become senior vice president in charge of the rest of North America. Both O'Shea and Masterson will report to Vaughan, who in turn reports to Reuters America president Andre Villeneuve.

Head of Reuters' New York region in its current form is Michael O'Connor. Effective January 1, he will take up a new position of head of national accounts. O'Connor will be responsible for business development among the company's larger client organizations.

The heads of Reuters' eastern, western and Canadian sub-regions will remain in place. So far, a replacement for Masterson as head of the central sub-region hasn't been announced, a spokesman says.

The reshuffle comes as Reuters continues the consolidation of its trading systems group in Oak Brook, Ill., a Chicago suburb. Reuters says it hasn't yet started moving staff from its Rich Inc. subsidiary in neighboring Franklin Park, Ill. But the company says it has informed all U.K. staff affected by the move, announced in July.

The Reuters spokesman says the affected U.K. staff have been given three options: moving within the trading systems group to Chicago; taking up a post within a separate Reuters group; or leaving the company. However, sources say that confusion abounds in London, where it still isn't clear who will stay, who will move and who will leave the company.

The reorganization and consolidation moves in North America follow the appointment earlier this summer of three directors to Reuters' board. Peter Job, managing director of Reuters Asia, David Ure, managing director of Reuters Europe, Middle East and Africa, and Reuters America's Villeneuve were named directors in June. They were previously alternate directors.

At the same time, Reuters appointed two new alternate directors: Mark Wood, currently editor-in-chief; and Robert Rowley, group financial controller and joint secretary.