Two months after a reorg that led to the ouster of several top executives at its troubled Markets division, Thomson Reuters (NYSE: TRI) says it is disbanding it along with the Professional unit. Instead, it will establish what appears to be a more collaborative set of units next year.
Among the more immediate changes, James C. Smith, currently CEO of the Professional division, has been named Thomson Reuters’ new COO.
“The changes we are announcing today will streamline our organization and enable us to work better across business units to achieve growth and capture operating efficiencies from scale,” said said CEO Tom Glocer in a statement. “The professional markets in which we operate are marked by increasing collaboration among specialists and Thomson Reuters must operate with the speed and agility needed to serve these demanding professionals.”
Glocer took over responsibility for the Markets division following the ouster of Devin Wenig in late July. A 17-year-veteran of Reuters, Wenig was the one who led the integration when the company merged with Thomson Corp. in 2008.
Among the other executives who were let go in the shake-up was Chris Ahearn, the president of Reuters Media.
During the company’s Q2 earnings call shortly after the dismissals, Glocer outlined his initial plans for fixing the Markets division, which has been plagued by a problem that is largely out of its hands: staffing levels at securities firms have not returned to pre-recession levels and headcounts are expected to be reduced further in the fall. As a result, there are few individual customers for the the division’s investment-related products like Eikon and Elektron. While the division will still be structured around those two products, sales have taken a hit, since the only option at the moment is to reduce and streamline.
Glocer’s 30-day plan involves reorganizing the roles of its sales staff, and a 90-day plan, which entails “repositioning” the product line. On top of that, there is a year-plus plan that calls for developing a broader strategy around Eikon and Elektron, but the company has yet to provide more details on that. Release