PUBLISHING giant Reed Elsevier has launched plans to pump £750m into Internet ventures over the next two years.

The group, which employs several hundred people in Oxford and Kidlington, said it would focus on building up new online products, sales and marketing programmes.

Reed will use its strong brands, especially in the scientific, legal and business markets, to push hard into the market.

However, the company announced a management shake-up that would involve the loss of about 1,500 jobs worldwide, with most being shed in the US.

Reed is moving to focus on its core customers - scientists, legal professionals and business executives.

The company is planning to make cost savings of £170m, the lion's share of which will be made this year.

Butterworth Heinemann, based at Jordan Hill in north Oxford, and Elsevier Science, in Langford Lane, Kidlington, are both Reed companies.

Chief executive Crispin Davis said: "Reed Elsevier has powerful and valuable assets - leading brands and market positions, high-quality and in-depth content, scale, professional people and financial strength.

"Coupled with the exciting opportunities opened up to us by the Internet, this represents a strong platform for growth."

But for last year, he unveiled a "disappointing" set of results and bemoaned "less favourable competitive and market conditions."

Adjusted pre-tax profits last year were £710m against £773m a year earlier. Turnover was £3.39bn, up from £3.19bn.

Mr Davis said he was targeting revenue growth exceeding the market average of five to six per cent by 2002 in what would be a turnaround of the company.

Story date: Monday 28 February

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