Fewer traders means fewer Reuters screens

But despite the money-saving measures, investors were unimpressed. Reuters shares closed down 11.7% at 135.5p on Tuesday.

The world's largest provider of financial information has been hit especially hard by falling stock markets.

Reuters' troubles have basically been caused by something well outside of its control - falling stock markets Click here for more on why Reuters' is in such a mess

Many of its customers - such as investment bankers, traders and other financial institutions - have cut back on its services.

It has also faced increased competition in recent years from rivals such as the unlisted US firm Bloomberg.

Breaking new ground

Reuters reported a net loss of £394m ($661m)in 2002, the biggest in its 150-year history.

And it says the poor market conditions are far from over.

It has forecast sales will fall by at least 9% in the first three months of 2003 and even more in the following quarter.

The company was already in the throes of a restructuring that, over the past two years, has shed 3,000 staff - more than 10% of Reuters' core workforce.

I think Reuters is well worth fighting for Tom Glocer, chief executive, Reuters

The firm has now increased the scale of the cutbacks, with the 3,000 new job losses to be in place by 2006.

Most job reductions will come from back-office operations and reducing new product development, but there may also be a small number of editorial redundancies.

"I think Reuters is worth fighting for," said chief executive Tom Glocer.

Still spending

"What I am trying to do is shape Reuters in a way to survive profitably even in a very long bear market," he said.

The stock has fallen about 70% over the past year.

Despite the cost-cutting, the firm also announced it had make an acquisition.

It has bought Multex, which provides earnings estimates to more than 16,000 firms around the world, for $195m in cash.

The purchase was described as a "major plank" in the strategy and focus on selling the most profitable information.