|Image [cc] Global X|
Thomson Reuter’s flagship financial product, Eikon, is turning out to be more like the Titanic after hitting an iceberg. According to reports from the New York Observer, Thomson Reuters has laid off around 3,000 employees, most from the financial sector, including sales, training and analysts’ divisions. In addition to these, it is also reported that there were also layoffs in the Editorial ranks, including big names like:
Peter Bohan, editor of Reuters America Service, has reportedly been let go. Mr. Bohan had been at Reuters for two decades, most recently as the Midwest bureau chief. Brad Dorfman, Reuters’s U.S. retail and consumer products company news editor, and Lee Aitken, who had been in charge of political coverage since 2012, were also reportedly let go from the company.
While most of the departures occurred at the managerial level, the majority of the Reuters TV team is out as well, after YouTube’s decision not to renew its one-year-old contract with the news service.
It’s not a good time to be an Editor these days, as Lexis has also recently announced the closing of the Matthew Bender’s Albany, New York office.
The Eikon product has already cost one Thomson Reuter’s CEO (Tom Glocer) his job, and hit TRI’s stock considerably since 2011. Plus, the Eikon flop placed Thomson Reuters on a list of 12 Companies that Could Go Bankrupt Very Soon. (Which caused us to write Could Thomson Reuters Be In Trouble? back in October 2011.)
The pain isn’t just being felt in the Financial Sectors of Thomson Reuters either. Anyone at Thomson Reuters with a good salary (this should include our friends at TR Legal) will feel the pain, too.
All Thomson Reuters employees, not just those in editorial, who make more than $100,000 will not receive raises in 2013.
All of these issues are pointing to a company that is struggling to pull all of its different acquired pieces together (think how well BNA/Bloomberg has merged, and then think of all the different platforms TR is still supporting.) It also seems that Thomson Reuters is not taking the market share away from Bloomberg in the financial market. It also seems to point to the need for TR’s Legal group to ramp it up and start bringing in more revenue and profits.
Those of us in the Legal Industry should be on the lookout for more sales pressure on the horizon.