Global FinTech firm FIS issues pink slips to over 400 employees in India

Move comes a year after firm's plans to hire 10,000 people in the country; more likely to be axed in restructuring exercise; final settlement likely within five days from separation date

Global fintech software provider Fidelity National Information Services (FIS) has started laying off its employees in India, a year after it announced plans to hire 10,000 people in the country, multiple sources confirmed on Friday. 

“The company has already sent termination letters to around 400 employees in Pune on a month’s notice,” an FIS employee said, adding this number shall increase. According to an internal letter dated December 1, the restructuring of FIS’ businesses in India has led to job cuts. 

The company employs around 3,000 people in Pune, including in-house and third-party recruitments. The company, which operates from six locations in India, has a headcount of over 20,000 people in the country but there was no clarity on lay-offs elsewhere.

These lay-offs come a week after Bloomberg reported the Jacksonville (Florida)-based company’s plans to cut thousands of staffers and contractors from its global workforce of 65,000 people. 

FIS provides technology solutions to merchants, banks and capital markets firms globally.

 “This is to inform you that due to the internal restructuring of FIS businesses in India, your role with FIS has become redundant, and accordingly, FIS has decided to terminate your employment with effect from December 30, 2022 (separation date),” the termination letter stated. 

An FIS spokesperson said: “During the FIS Q3 2022 earnings call, we introduced our plan to address current macro-economic challenges. Rightsizing our portfolio and our workforce have always been an important part of our growth strategy to serve our clients and meet market demand. FIS has had a presence in India for more than two decades and remains committed to this important market for its continued growth,”.

The global revenue of the company grew only 3 per cent YoY, to $3.6 billion in Q3 2022. 

The Bloomberg report said Stephanie Ferris, president of FIS, aims to restore investor confidence by reducing costs by $500 million in the coming quarters. The company’s share prices have declined 44 per cent this year. Ferris will be appointed the company’s new chief executive officer (CEO), effective on January 1.

Those being sacked are entitled to receive severance compensation based on their monthly basic pay for the duration of their tenure (calculated in years) in the company. The compensation and final settlement should be completed within five days after the separation date, the letter added.

The employees laid off have been asked to return phones, laptops, access cards, business cards, and other properties of the company before January 10. The termination letter also said that they do not need to report to their duties from December 1 and may use their notice period to explore new opportunities outside the company. “In the meantime, FIS will also make sincere efforts to explore options to re-deploying you internally.”

The sudden lay-offs have alarmed worker unions. Nascent Information Technology Employees Senate (NITES) issued a statement saying it “strongly condemns the unethical lay-offs started by financial services technology provider, FIS - Fidelity National Information Services.”

“The company has violated provisions of the Industrial Disputes Act and is aiming to restore investor confidence by reducing headcount arbitrarily. The termination letter sent to employees states that due to internal restructuring the role of workers has become redundant. The company under the pretext of redundancy is laying off employees illegally and unethically. NITES will leave no stone unturned to provide justice to aggrieved employees,” said Harpreet Singh Saluja, president of NITES.