FIS Cuts 2,600 Jobs During ‘Comprehensive Assessment’ of Business

FIS has reportedly laid off 2,600 employees and contractors in recent weeks.

The cuts amount to 2% of the FinTech’s workforce, according to a Thursday (Feb. 2) Bloomberg report that cited unnamed sources.

The move comes as the firm is reviewing its operations at a time when its shares have plunged 36% over the last year, while the S&P 500 Information Technology Index dropped 16%, according to the report.

An FIS spokesman declined to comment on the report.

The firm launched a strategic review in December while also making several leadership changes.

Effective Dec. 16, then-President Stephanie L. Ferris became CEO, then-CEO and Chairman of the Board Gary A. Norcross departed from the company and the board of directors, and then-Lead Independent Director of the Board Jeffrey A. Goldstein was appointed independent chairman of the board.

These moves that were announced Dec. 15 accelerated changes that had been announced in October and were to have been effective Jan. 1, 2023.

At the same time, FIS said Ferris and the board had launched a “comprehensive assessment” of the firm’s strategy, businesses, operations and structure, aiming to improve results, shareholder value and client services.

The review is a priority and has no timetable for completion, FIS said.

“As I begin my new role as CEO, I am committed to working with our board and management team to evaluate and pursue the best opportunities for innovation, efficiency and growth, and I am excited to uncover new ways of driving value for all of our stakeholders, including our shareholders and clients,” Ferris said at the time. “We are taking a hard look at every aspect of our company to define areas for change and develop specific action and improvement plans.”

The news of the layoffs comes about two weeks after The Wall Street Journal reported that tech firms are taking a more back-to-basics strategy following a year in which more than 153,000 workers in the sector lost their jobs.

Last year also saw the connected economy and tech stocks tracked in PYMNTS’ CE 100 Index finish 2022 about 36% lower than they were 12 months earlier.