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.

  • Anonymous

    It is interesting reading this from the UK knowing that TR have just bought out PLC – and also worrying….

  • Anonymous

    Continues to be a reactive decsion making processes not aligned to any real values or strategy. A retalitory culture that quells thought and innovation.

  • Anonymous

    This seems old news – My Eikon is great and it has become somethng I really rely on, including the Reuters News. I guess layoffs always make people criticise a company but aren't they just a fact of life right now?

  • I'd have to say that laying off of around 6% of your employees is not just the facts of life at a time when the economy is supposed to be coming around. As for Eikon, the product may be excellent… but if you can't compete against the big guys like Bloomberg, and the little guys like Morningstar are taking market share away, then you have a problem.

  • Anonymous

    You mention those in the legal industry should be on the look out for more sales pressure on the horizon, but more sales pressure does not a profit make (maybe revenue)but not profit. Seems the sales pressure hasn't saved those that work at TR Elite.

  • Anonymous

    As one of the ones who have been "tapped" on the shoulder, I do feel the pain. It makes me sad for my coworkers left behind. The mood is somber at work, to say the least.

  • MR

    I currently have a trial version of Eikon – management wanted to give it a try and see if it could replace some of the more expensive Bloomberg terminals. No one thus far likes Eikon. Logging in takes for ever, loading new tabs takes for ever, some of the data is mislabel, the command search sucks compared to Bloomberg, the tech support is also terrible compared to Bloomberg, and the list goes on. I don't doubt that Eikon is great, but its undoubtedly worse than Bloomberg