Did FIS Layoff Employees? | Is FIS Shutting Down in 2023?

Did FIS Layoff Employees? Yes, they did!! In January 2023, it was reported that the company laid off more than 2,500 employees and contractors.

The data says that by February 2, 2023, FIS (FinTech) reduced its workforce by 2 percent…

The FIS moved to maintain its shares, which dropped to 36 percent from the previous year. While gathering information on its plunged shares, the firm cut its workforce by February 2, 2023.

S&P 500 IT company also reported a drop in shares by 16 percent.

But no response was given by the FIS, and the firm’s spokesman refused to reply to the report.

But it is believed that they were planning to make a drastic change in the management and leadership of the firm from last year in December.

When they decided to make several changes in the management, In December, Gary A. Norcross, the former CEO and Chairman of the Board was replaced with the new CEO named Stephanie L. Ferries. In the same year, Jeffrey A. Goldstein was the new independent Chairman of the Board, formerly known as the lead independent Director of the Board.

The firm announced its move on December 15, 2022, and came into action on January 1, 2023. The changes decided to happen in October 2023 were accelerated changes on December 15.

To improve firm efficiencies, such as its results, client services, and shareholder value. FIS was working under Ferris, and the board released a comprehensive assessment of the structure, businesses, operations, and company’s strategy.

The company decided to make this move and expected it to be completed by February 2023. But a timetable has yet to be released for its completion. But the review for the company is indeed critical.

The company’s new CEO, Ferris, stated, “I am so excited to be honored with this role in this reputed company. As I started my journey in FIS as CEO, I promised to work with all our company team members, the board, and the management team to identify and grab better opportunities for innovation, growth, and efficiency. I am overwhelmed to reveal new methods that help us to drive value for everyone, including our clients and shareholders.”

Also added, “For the growth and development of the company, we’ll try to investigate everything deeply. Also, our moves will favor the company’s change, improvement, and development.”

It was believed that in 2022 the layoffs impacted more than 153,000 employees in tech companies. FIS was making this move because the firm needed better shape. If we looked at PYMNTS’CE 100 Index, economy and tech stocks in 2022 dropped 36 percent compared to 2021.

DiscontinuedNews is impartial and independent, and every day, we create distinctive, world-class programs, news, and content that inform, educate and entertain millions of people worldwide.

Table of Contents

Is FIS Shutting Down?

Is FIS Shutting Down? No, there are no commands for the FIS shutdown. But the FIS layoff is there. As a US Fintech giant, Fidelity Information Services (FIS) shed its full-time workforce. If equated, it comes to around 2 percent of the entire working staff in the company.

FIS is laying off employees to cut down the cost of around 500 million US dollars for the upcoming quarters.

This move was made to regain the interest of the investors. Because they were losing confidence when the fintech shares went down and plunged to 36 percent last year.

According to the news agency, When the layoff process was going on, among the laid-off employees, 1000 were contractors.

To obtain stronger results, improved customer services, and increased shareholder value, the firm launched a “comprehensive assessment” by the CEO and the other board members of the FIS.

This project came out when FIS agreed to the cooperation agreement with D.E Shaw & Co., but the process impacted JANA Partners also.

To carry out this process, Rosen & Katz, Wachtell, and Lipton were the legal counsel, and the financial advisor for the review was Goldman Sachs.

FIS Acquisitions

Since its launch, FIS has made several acquisitions, and these are as follows:

In 2003, it acquired Alltel Information Services for 1.05 billion US dollars.
Again in 2003, FIS acquired WebTone Technologies.

In 2004, Sanchez Computer Associates was acquired for 175 million US dollars.
In 2004, FIS acquired Aurum Technology.
In 2004 BankWare was acquired.

Ib 2004, InterCept
In 2004, FIS also acquired Kordoba GmbH & Co. for 163.2 million US dollars.
In 2006, FIS merged with Certegy Inc. for 1.8 billion US dollars.

Again merged with eFunds Corporation (EFD)
In 2009, Metavante Corporation for 2.94 billion US dollars in stock
Compliance Coach, Inc acquired in 2010

FIS acquired Capco for 292 million US dollars in 2010. On the contrary, it sold out more than half of Capco’s shares to CD&R funds for 477 million US dollars.
FIS acquired Platform Securities in 2013, formerly known as Toronto Dominion Wealth Institutional, TDWI, for 120 million US dollars.
CMSI was acquired in 2014.

Reliance Trust Company was acquired in 2014 for 110 million US dollars.
In 2014, Clear2Pay was acquired for 480 million US dollars.
In 2015, SunGard Data Systems for 9.1 billion US dollars

Worldpay, Inc. was acquired by FIS for 43 billion US dollars in 2019
In 2022, FIS acquired Payrix.

about fis

FIS stands for Fidelity National Information Services, Inc. is MNC most popular for its Financial Technology. FinTech development in America. It provides a wide variety of financial products and services.

In 2016, FIS ranked second in the FinTech Forward 2016 rankings. As of Q3 of 2019, it sealed the deal to seize Worldpay for 35 billion US dollars and became the world’s largest processing and payment company.

It was believed that in Q2 2020, FIS will provide its services in three primary segments, i.e., Capital Market Solutions, Merchant Solutions, and Banking Solutions.

In processing around 75 billion transactions to over 25,000 clients service worldwide, FIS offers the movement of nearly 9 trillion US dollars every year.

FIS Forecast 2023

The outlook for 2023 was released by the firm in a separate press conference along with the 2023 outlook FIS also declared last years and fourth quarter results. It was believed that the solutions of the FIS are involved in it, and the separation will not impact the FIS’s 2023 outlook.

On February 13, 2023, at 8:30 in the morning, the company revealed the full year 2022’s earnings on the live webcast.

STOCK PRICE FORECAST: Several analysts forecasted a 1-year stock price for FIS (Fidelity National Information Services Inc.). It is estimated that the median target of 70.00, with high and low estimates of 90.00 and 56.00, respectively.

It indicated an increase in the median target from the last price. If we compare the median estimate to the last price, it represents a 26.20 percent increase of 55.45 (list price).

EARNING & SALES FORECAST:

Earning per share: 1.48 US dollars (Growth: 14.72 percent quarterly & -10.51

percent annually)

Sales: 3.7 billion US dollars (Growth: 5.69 percent quarterly & 0.04

Percent annually)

Reporting Date: August 1

FIS Financial Statements

Let’s look at the Financial Statements of FIS from 2019 to 2023.

Here we have mentioned that the annual data of FIS’s financial statements would be in millions of dollars yearly.

ANNUAL DATA 2019 2020 2021 2022

REVENUE: $10.333 $12.552 $13.877 $14.528

COST OF GOODS SOLD: $6.610 $8.348 $8.682 $8.820

GROSS PROFIT: $3.723 $4.204 $5.195 $5.708

NET INCOME: $298 $158 $417 $-16.720

Research and Development

Expenses: – – – –

SG&A Expenses: $2.667 $3.516 $3.938 $4.118

Other Operating Income: $-87 $ -136 $ -202 $-17.709 –

OPERATING EXPENSES: $2.754 $3.652 $4.140 $21.827

OPERATING INCOME: $969 $552 $1.055 $-16.119

Total Non-Operating Income: $-556 $-286 $-266 $-212

PRE-TAX INCOME: $413 $266 $ 786 $-16.331

INCOME TAXES: $100 $96 $371 $377

INCOME AFTER TAXES: $313 $170 $418 $-16.708

OTHER INCOME: – – – –

CONTINUOUS OPERATIONS: $303 $164 $424 $-16.708

DISCONTINUED OPERATIONS: – – – –

EBITDA: $3.437 $4.297 $5.100 $-12.242

EBIT: $969 $552 $1.055 $-16.119

BASIC SHARES OUTSTANDING: 445 619 616 604

SHARES OUTSTANDING: 451 627 621 604

BASIC EPS: $0.67 $0.26 $0.68 $-27.68

EPS – EARNINGS PER SHARE: $0.66 $0.25 $0.67 $-27.68

FIS Top Competitors

FIS ranked second in the Fintech Category, but several other companies compete with FIS. Let’s put light on the top competitors of FIS with market shares:

Simple – 50.30 percent
Mirror – 25.15 percent

Equifax – 3.69 percent
FactSet – 2.59 percent
QuoteMedia – 2.55 percent

Finicity – 1.69 percent
Dianomi – 1.41 percent
Quorum Analytics – 1.08 percent-

Envestnet – 0.98 percent
S&P Capital IQ – 0.93 percent
Banno – 0.70 percent

Addepar – 0.69 percent

FIS Layoffs – Wrapping Up

We’ve concluded that FIS laid off more than 2,500 workforces when the firm launched a Comprehensive Assessment for the betterment of the business.

The new CEO was to be blamed for this move as she released a strategic review of the company’s operations to improve the deteriorating situation of the company.

The review was taken as the initial step for the company, but a timeline has yet to be set for this review.

June 2, 2023Tags: FIS Layoff 2023