FIS India Layoffs: Indian Arm Of American MNC Fidelity National Information Services Fires 400 People
Fidelity National Information Services (FIS), an American MNC reportedly plans to sack 400 employees. Find out more details!
Over 400 employees in Pune have received pink slips from the India division of Fidelity National Information Services (FIS), an American multinational company operating in the fintech sector. Not only that but over 400 employees in Pune have also received similar letters of termination. According to people with knowledge of the situation, more layoffs of personnel are imminent. The company also operates out of Bengaluru and Gurugram.
The fired workers are also entitled to severance pay. The termination letter from FIS stated, "You will be entitled to receive a severance compensation calculated at the rate of one (01) month of your base salary for every completed year of continuous service (subject to a maximum limit of twelve (12) months) with FIS and the same shall be paid to you within five (5) working days from the Separation Date." Moreover, ex-employees received a letter of termination that included the following clause: "You (employees) agree to unconditionally and irrevocably discharge and release FIS, its subsidiaries and affiliates, its directors, employees, legal representatives, successors and / or assigns, of and from all claims, cause of action, charges, debts, dues, sums of money, demands, or otherwise, known, or unknown, in law or equity, accrued or unaccrued, contingent or non-contingent, arising at any time up to and including the Separation Date."
It is also important to note that the fintech and IT company has been experiencing financial difficulties in the recent times. With organic growth stalling, FIS shares have fallen in its merchant business. In its Nov. 3 earnings release, the business stated that the shift in American customers' purchasing patterns toward more discretionary verticals is impacting segment yield. The stock of the fintech company has plummeted by about 45% so far this year, which is less than the S&P 500's 17% fall in that time.
According to a report by Bloomberg, Stephanie Ferris, the organization's recently appointed CEO, intended to make significant expense cutbacks in order to please investors. A $500 million cost reduction goal was reportedly set by the corporation for its enterprise transformation effort.