Many employees of the US financial services technology firm FIS got termination letters on Thursday, stating that their position with the company had become obsolete. According to the letter, FIS has chosen to terminate your employment effective December 30, 2022, due to redundancy.
This comes at a time when the corporation is reportedly going to lay off a large number of people worldwide. Stephanie Ferris, who will become CEO of the corporation in January 2023, is thought to aim to slash costs. India employs over one-third of the workforce (approximately 55,000 people). Though the precise number of layoffs in India is unknown, it is reported that approximately 400 employees in Pune have gotten termination letters.
Employees, according to internal correspondence, will receive severance pay calculated at one month’s basic salary for each completed year of continuous service with FIS. FIS said in a statement, During the FIS Q3 2022 earnings call, we announced our plan to overcome current macroeconomic challenges. Rightsizing our portfolio and staff has always been a critical component of our growth strategy in order to better serve our clients and satisfy market demand.
Meanwhile, the newly formed Nascent Information Technology Employees Senate (NITES) has harshly condemned FIS’s unethical layoffs. According to Harpreet Singh Saluja, President of NITES, the firm breached provisions of the Industrial Disputes Act. It is attempting to restore investor trust by arbitrarily decreasing the workforce.
Termination Letter Statements
You will be entitled to severance pay calculated at one (01) month of your basic salary for each completed year of continuous service (up to a maximum of twelve (12) months) with FIS, which will be paid to you within five (5) working days of the Separation Date.
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 any and all claims, causes 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.
FIS has had a presence in India for over two decades. The business shows dedication to this crucial market for future growth. According to the company’s third-quarter statistics, revenue climbed by roughly $100 million. It is 3%, over the prior-year period on a GAAP basis. IT and fintech firm has been experiencing financial difficulties in recent time. The stock of the fintech startup has dropped roughly 45 percent year so far, trailing the S&P 500’s 17 percent drop during the same period.
The company’s newly hired CEO, Stephanie Ferris, intended to make dramatic expense cutbacks in order to placate investors. Through its enterprise transformation effort, the corporation reportedly aimed to save $500 million in costs. Last year, the company announced plans to hire 10,000 workers across levels in India. It has a special emphasis on graduates from tier II and III towns.
Fidelity National Information Services, Inc. (FIS) is a worldwide firm based in the United States that provides a diverse range of financial products and services. As of Q2 2020, it offers products in three main categories: Merchant Solutions, Banking Solutions, and Capital Market Solutions. FIS supports the flow of about $9 trillion per year. It processes around 75 billion transactions in service to over 20,000 clients worldwide.
The FinTech Forward 2016 rankings placed FIS second. FIS became the world’s largest processing and payments company after completing its most recent acquisition of Worldpay for $35 billion. FIS has completed numerous acquisitions during its history. It would have been its largest to date, but it fell through at the last minute in December 2020.
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