Feb 2, 2023
FIS’s Job Cuts Reach 2,600 as Fintech Giant's Review Continues
(Bloomberg) -- Fidelity National Information Services Inc. has so far eliminated 2,600 staffers as new Chief Executive Officer Stephanie Ferris continues her strategic review of the financial-technology giant’s business.
The job cuts, which amount to roughly 2% of the company’s full-time workforce, included about 1,000 contractors, according to a person with knowledge of the matter. The dismissals came in recent weeks, the person said, asking not to be identified discussing information that isn’t public. A spokesman for Jacksonville, Florida-based FIS declined to comment.
Ferris took the reins of the beleaguered fintech in December and, alongside new Chairman Jeffrey Goldstein, vowed to embark on a wide-ranging review of the company’s strategy, businesses, operations and structure. The job cuts are part of Ferris’s plan to deliver at least $500 million in cost savings in coming quarters and win back investor confidence.
FIS’s shares have sunk 36% in the past year, wiping out nearly $30 billion in market capitalization. That compares with a 16% decline in the 76-company S&P 500 Information Technology Index.
“We are taking a hard look at every aspect of our company to define areas for change and develop specific action and improvement plans,” Ferris said in December. “The board and I are fully aligned in implementing this comprehensive review of our businesses.”
FIS provides banking and capital-markets technology for thousands of financial institutions. The company also offers payments technology for online and brick-and-mortar merchants around the world.
Ferris hasn’t said when the review will wrap up. In connection with the process, FIS announced it had signed a cooperation agreement with hedge fund D.E. Shaw & Co., which has pushed for changes at several companies, including Exxon Mobil Corp., Verisk Analytics Inc. and Lowe’s Cos. The announcement of the review also reflected discussions with hedge fund Jana Partners, another shareholder.
Last month, FIS added Lee Adrean, a former Equifax Inc. executive, and Nuance Communications Inc. CEO Mark Benjamin to its board. The company previously said Goldman Sachs Group Inc. is serving as its financial adviser for the strategic review.
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