Is FactSet Laying Off Employees? FactSet Research Systems Inc., a financial data and software company, announced layoffs.
During the first month of 2024, FactSet faced a layoff surge despite a strong job market. Approximately 177,000 workers were hired by businesses. But the jobless rate ticked slightly to 3.8% from the previous month’s 3.7%. The exact number of employees affected by this round of layoffs is uncertain. But FactSet has indeed laid off some of its staff.
Let’s find out more!
In 2018, FactSet underwent restructuring under its CEO. It resulted in the elimination of 165 jobs.
Last year, in 2023, there were a lot more job cuts than the year before. The number of job cuts went up to 270,416, 396% more than the previous year. The tech industry was hit the hardest, losing over 240,000 jobs, 50% more than the last year.
This year, 2024, the tech industry is still struggling. In the first four weeks of the year, big companies like Meta, Amazon, Microsoft, Google, TikTok, and Salesforce laid off around 25,000 employees, according to Layoffs. FYI, 93 tech companies will lay off 24,584 employees in 2024.
Employee Perspectives
Some employees express frustration with the company’s handling of layoffs. They highlight issues such as:
- Poor timing (announcing layoffs right before Christmas)
- Distasteful holiday greetings
- Concerns about vulnerable employees losing their livelihoods.
Criticisms also extend to the company’s tribalist culture, lack of external influence, and leadership inexperience. FactSet’s stock price is considered overinflated, and its focus on AI trends has raised questions.
Even with these difficulties, FactSet is still dealing with the complicated world of finance. It is affecting its workers and the larger market.
Background of FactSet
FactSet Research Systems Inc. is known as FactSet. It is a company in the United States that deals with financial data and software. It started in 1978 when Howard Wille and Chuck Snyder decided to create a company that could give financial information directly to clients using computers.
At first, they delivered data on paper to clients. But now, clients connect to FactSet’s private network using the internet and wireless devices. Over the years, FactSet has added many services like client support, learning, and various data-related services. It has been around for a long time, and its value in the market is around $15 billion.
The company’s history involves changes and improvements. In the 1980s, they made it quicker for clients to download data into spreadsheets. In the 1990s, they expanded to Europe and Asia and changed their name. Later, it became a public company on the New York Stock Exchange.
In the 2000s, FactSet introduced new products and acquired databases to enhance its services. In 2015, they received companies like Code Red Inc., Portware, Vermilion Software, CYMBA Technologies, BISAM, and Interactive Data Managed Solutions. This way, they strengthened their position in the financial industry.
FactSet’s journey continued with more acquisitions and expansions. This makes it a key player in the financial market. In 2021, it achieved another milestone by joining the S&P 500.
What Other Companies Are Laying Off In 2024?
Let’s take a look at companies that are laying off in 2024:
Alphabet (Google’s Parent Company):
It is laying off employees in its innovation lab called X.
The lab is changing its structure to help new projects become independent businesses faster.
Amazon:
It is laying off workers in its media divisions.
We are eliminating several hundred roles to focus on meaningful content and product initiatives.
American Airlines:
Laying off 656 employees in its customer support department.
Consolidating teams in Phoenix and Dallas-Fort Worth.
Business Insider:
I am laying Off about 8% of its workforce.
They are refocusing teams to drive more value for their core audience.
Citigroup:
Planned to lay off around 20,000 workers as part of ongoing changes.
Focusing on the performance of its businesses and transformation.
These companies adjust their teams for various reasons, including laying off some employees.
Why Is Layoff Happening Everywhere In 2024?
Look at five major trends affecting the job market this year and see which industries are doing well despite economic challenges. Let’s find out why is layoff happening everywhere in 2024:
Too Many Hires During the Pandemic:
When COVID-19 hit, everyone relied on technology, and companies hired many people to meet the online demand. But in 2024, companies realize they have hired too many people and need to save money. This means some employees might be laid off.
Companies Cutting Costs:
In 2023, companies spent a lot of money and are trying to save. Cutting costs is a big reason why companies are laying off employees. They want to keep more money for themselves and make investors happy.
Rise of Robots and AI:
More companies are using robots and artificial intelligence (AI) to do work instead of hiring people. This trend might lead to more layoffs because machines take over some jobs. Some companies are even replacing human jobs with AI tools like Bard.
Companies Combining or Being Bought:
Companies joining forces or getting bought often change things around, leading to job losses. They might reorganize jobs or departments, making some employees unnecessary.
Sending Jobs Overseas:
Some companies send jobs to other countries where work is cheaper. They hire agencies with workers who get paid less. Unfortunately, this often means job cuts for people in the original company.
Industries That Stay Strong During Tough Times:
Not every industry announces layoffs. Some do better when things get tough, for example:
- Healthcare and Social Assistance: Healthcare and social assistance jobs stay strong because people always need medical help.
- Retail Trade: Stores selling essential things, like groceries, do well during tough times.
- Food and Accommodation Services: Although linked to spending, this sector expects fewer job cuts due to a labour shortage and recovery from the pandemic.
Despite tough times in 2024, there are options for companies before layoffs. They can offer more time off, allow virtual work, and cut unnecessary expenses to preserve jobs.
For employees, knowing about industries that resist layoffs is crucial. Historically, sectors like healthcare, retail trade, and food services have had fewer job cuts. Considering jobs in these areas might be an intelligent move for stability during uncertain times.
What’s Coming Next?
FactSet Research Systems Inc. had a strong start in the first quarter of fiscal 2024. Let’s find out what is coming next:
Q1 Fiscal 2024 Highlights:
The company made $542.2 million in revenue, 7.4% more than the previous year.
The core revenue (organic revenue) grew by 7.2% compared to last year, mainly because more people bought Wealth services and data.
The Annual Subscription Value (ASV) plus professional services reached $2,184.6 million. It is showing a 7.1% increase from the previous year.
Operating Margins:
FactSet’s profit margins were good. The regular operating margin improved to 34.9%. Even though the adjusted operating margin decreased slightly to 37.6%, it’s still solid.
Earnings per Share (EPS):
FactSet made more profit per share. Regular earnings per share (EPS) went up by 9.1% to $3.84. Considering some extra factors, adjusted EPS increased by 3.3% to $4.12.
Recent Developments:
FactSet is working responsibly with AI. They’ve outlined a plan called AI Blueprint to deploy AI solutions wisely.
They introduced FactSet Mercury, a new tool for junior bankers that uses a big language model.
In short, FactSet is doing well. They’re making good money, and they’re keeping up with changes in the market. They also added some new tools and are using AI smartly.
Who Are The Competitors Of FactSet?
Here are some choices if you’re searching for other options similar to FactSet in the financial data and analytics field. FactSet faced competition from companies like Bloomberg L.P., Refinitiv, and S&P Global.
- AlphaSense: A tool for investment and corporate professionals, helping them quickly find essential data. People like it because it’s user-friendly and offers thorough financial research.
- Bloomberg Terminal: This high-tech service gives quick access to crucial news, data, and tools for trading. Subscribers can use its powerful features to make informed decisions.
- YCharts: Often called the “Financial Terminal of the Web”. YCharts provides various tools and data analytics for financial research.
- Refinitiv Eikon: It offers an easy way to access reliable news, data, and analytics, all presented in a visually explicit manner. It’s valuable for people working in finance.
Remember to check the cost and features when choosing the best one for your needs.
The Bottom Line
In summary, FactSet announced layoffs, affecting employees and the finance industry. As the company deals with these changes, it’s essential to consider the people involved. Releases are complex, but sometimes companies have to do them. Layoffs happen to adjust to the changing market and stay financially stable.
Companies like FactSet must be transparent, talk to their employees, and help those affected by these changes. Looking ahead, we hope that FactSet and other companies going through similar situations become more robust and better prepared for what’s next in the financial data and analytics field.