TowerGroup experiences layoffs

SageCircle has received credible intelligence that TowerGroup has  initiated a job action resulting in analyst lay offs. We will continue to provide updates as we learn new information.

 

Update: 7/9/09 9:07 am PT -Initial post. Sent request for confirmation to TowerGroup’s press office

Update: 7/9/09 9:28 am PT – Spoke with TowerGroup’s PR agency and they are checking with Tower about the SageCircle request

Update: 7/9/09 10:01 am PT – First analyst confirmation. Added to list below.

Update: 7/9/09 11:01 am PT – Another analyst added to list

Update: 7/9/09 11:32 am PT – Two analysts added to list

Update: 7/9/09 12:12 pm PT – One analyst added to list

Update: 7/9/09 1:50 pm PT – two analysts added to list

Update: 7/13/09 9:37 am PT – one analyst added to list

Update:7/13/09 9:46 am PT – report that entire European operation closed, except one analyst

Update: 7/13/09 2:27 pm PT – response from Tower about Euro cuts 

Of course, layoffs impact real people with families and obligations. Often AR people are genuinely friendly with the analysts they work with and this sort of news can be a shock. Unfortunately for AR professionals, analyst firm layoffs also raise important issues that need to be addressed ASAP no matter how much sympathy they feel for the analysts caught in the layoffs.

Related reports and obsservations

9/13/09 2:27 pm PT – from Bob Egan, TowerGroup head of research, via Twitter: “@carterlusher We remain very strong and committed to Europe with 3 in region analysts backed by an experienced team of global analysts.”

9/13/09 9:54 am PT — How much of this reflects business issues with TowerGroup versus its owner, MasterCard? For instance, the last layoffs at IDC were mandated by across-the-board IDG cuts.

9/13/09 9:46 am PT – Credible repot that entire European operation, both analysts and sales, were laid off with exception of one analyst left in London.

TowerGroup Official Statement

None at this time. Will be added should TowerGroup decide to issue a statement.

Background

For background on why some 

Analyst firms should notify vendors about staff changes

Especially vendors with scheduled briefings, consulting days, or key projects by analysts  who submit their resignations

Analyst relations (AR) professionals are sometimes blindsided in the final preparations for a long scheduled briefing, analyst summit, or analyst consulting day (aka SAS) to discover that the analyst had submitted his or her resignation several weeks before. Worse yet are situations where the vendor has just conducted a briefing only to learn days later that the analyst has just left the firm. Either way it is bad for AR who now has to scramble to change plans and could experience the wrath of executives who perceive that AR just wasted their time by being uninformed.

For a variety of reasons, analyst firms are reluctant to admit that an analyst is leaving the firm. However, these reasons are insufficient for withholding critical information from AR teams who work hard to facilitate the flow of information from the vendor to the analyst firms. It is not appropriate for the firm to arrange a last minute substitution without

IDC lays off eight analysts and 15 additional staff

Tips started coming into SageCircle last night. Over the last twelve hours we have identified five six of the eight analysts. Out of respect to the analysts we will not publish the names.*

In an e-mail exchange with SageCircle, IDC Corporate Communications Director Michael Shirer released the following statement:

• On May 20, IDC reduced its U.S. headcount by 23 — this represents 1% of IDC’s 1,680 employees worldwide.
• Most of the staff reductions came from

What to do when analyst firms lays off analysts

SageCircle has learned that IDC has initiated a round of analyst layoffs. At this time the exact number of staff and coverage is not known. AR teams need to hope for the best for their favorite IDC analysts, but plan for the worst.

Of course, layoffs impact real people with families and obligations. Often AR people are genuinely friendly with the analysts they work with and this sort of news can be a shock. Unfortunately for AR professionals, analyst firm layoffs also raise important issues that need to be addressed ASAP no matter how much sympathy they feel for the analysts caught in the layoffs.

The stark reality is that an analyst firm will not admit that