Abstract

Reuters, the financial information firm, seemed to be in serious trouble, with a loss of $740 million in 2002. 1,200 jobs had been cut during 2001-2002 and another 3,000 cuts were planned in 2003. The company's fall had been sudden. Until 1997, Reuters had been the undisputed leader in this market. Since then, competition had snatched market share. Reuters' core business, the terminals it served, had fallen by 18%. Reuters' average revenue from each terminal was down to a quarter of Bloomberg's. Technology spending cuts had also hit Reuters hard. Reuters had not faced such a bleak situation in its 150-year history. The case provides an overview of how industry leaders often fail to respond fast enough to the changing business environment.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Reuters, Bloomberg, Financial data services, Fast forward, Tom Glocer, Financial information, Instinct, On-line trading, Thomson Financial, Peter Job, Reuters in trouble, Losing clients, Cost cutting, Downsizing, Merrill Lynch