Why Thomson Reuters Stock Crushed it on Monday
Key Points
According to a report from its own news agency, this will affect up to 500 engineers.
This is due largely to its continuing embrace of AI solutions.
Although investors have been worried about the high price tag that comes with artificial intelligence (AI) build-outs, they continue to reward companies that embrace the technology. One example of this on Monday was the venerable news and data company Thomson Reuters (NASDAQ: TRI), whose stock rose by more than 5% on news that it was effectively pushing further into AI.
Swapping out the engineering team
Thomson Reuters announced in a staff meeting that it will eliminate what it characterized as "a small number of roles" in its engineering ranks. This, fittingly enough, was reported by its Reuters unit, which published a news article citing an unnamed employee who was in attendance.
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That source told Reuters the company aims to eliminate up to 500 positions as it leans harder into AI capabilities. It also plans to bring on over 250 net new engineering jobs over the next two years, most of whom should be at the senior level and "AI native," in its words.
Reuters quoted an unidentified company spokesperson as explaining that "as customer expectations across legal, tax, and regulatory workflows evolve, we are focusing our capacity where it matters most to customers."
Losses for gains?
According to Thomson Reuters management, AI was a key factor in its most recent growth-filled quarter and will continue to be going forward -- in fact, it's expecting a notable improvement in annual revenue this year compared to 2025. While no one likes to hear about net job losses, this continued embrace of AI seems to be making a real difference for the company.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Thomson Reuters. The Motley Fool has a disclosure policy.