Finastra on job cuts: the decision "was not taken lightly"

Finastra on job cuts: the decision “was not taken lightly”

EXCLUSIVE: Finastra, which emerged earlier this year from the combination of two banking tech vendors, D+H Corporation and Misys, has made a number of job cuts across its operations.

It is understood that around 350 people have lost their jobs in the US, mainly on the legacy D+H side.

Gerrard Schmid, CEO of D+H, left the company in June, once the merger completion was announced.

There are also reports about more roles being moved offshore.

“As part of the combination of operations, we reviewed areas of commercial overlap to avoid duplication and focus investment in the areas where we see the greatest opportunities,” a spokesperson from Finastra tells Banking Technology.

“This includes the development of global centres of excellence to foster collaboration and innovation, four of which are in the US. We remain strongly committed to development at these centres of excellence in the US.”

In the UK, various roles have been scrapped, including some marketers and “strategists”. Among them is Peter Farley, who joined Finastra (Misys at the time) in January 2016 as marketing strategist for capital markets. Farley has now joined MarketsFlow, a start-up artificial intelligence (AI) technology firm, as communications director.

Alex Kwiatkowski, formerly a senior strategist, banking and digital channels at Misys/Finastra, has moved to SAS.

“We decided to make a number of changes, which were not taken lightly but did result in a number of job losses across the business. A number of roles were also transitioned to a virtual work style [i.e. remote working],” the spokesperson says.

The company says it employs around 10,000 worldwide.

  • Anthony Payne 15 September, 2017 at 1953

    Tanya, please define “virtual workstyle”?

    • Tanya Andreasyan 16 September, 2017 at 1200

      Working remotely.

  • Jean-Michel Informaticien 19 September, 2017 at 2355

    They are still firing. Mainly in the US still, China and a few in France. In France it’s hard to kick out people like that so they are trying to make employees’ life hard so that they’ll leave Finastra themselves. Sad.

  • George 20 September, 2017 at 1835

    The layoffs, and in many cases outsourcing to India or Asian countries, are part of a request to cut over half of the operating costs with the merger, between the two companies. Simple corporate mentality that they do not care about the staff or quality of product produced, as long as more and more money comes back to the investors/shareholders each quarter. This company is the epitome of corporate greed.

  • Fred 20 September, 2017 at 2012

    Finastra layoff victim here. Laid off from the Mequon, Wisconsin office. They are not done, either. My sources say another round is very likely in November. Finastra is not interested in product development or innovation. The current staff is overworked and there to maintain minimal legal requirements.
    Finastra imposed a hiring freeze in June shortly after the merger was closed. The only position they are hiring for is Sales Reps. There are plenty of reps but they are pushing inferior products. Customers are catching on and there will be more cancellations, mark my words.
    It’s quite a shame because D+H was a good company to work for. Also, watch for Finastra to cut insurance benefits and raise the costs at the same time. My advice to current Finastra workers: Get out before this ship sinks completely!!!

    • Jose' 21 September, 2017 at 1504

      Bitter and inaccurate…

      • Fred 10 October, 2017 at 2315

        Wrong, Jose’!!!! The products are in need of major overhaul and should have been done years ago.
        I spoke to someone that is contemplating Mortgagebot or Encompass. Encompass is nieman Marcus and Mortgagebot is barely Walmart. Prior to leaving, I worked with a few mid-level clients that were cancelling this year. There are more.
        Finastra scrapped a new product line that D+H worked years to develop and just rolled out this past Summer. They will drain the resources of the company dry.

  • D 25 September, 2017 at 0019

    I left for another company before the layoffs, I have since spoken to a number of people at Finastra about the situation.

    Finastra spokesperson is ill informed, they have laid off a thousand plus employees worldwide, not the 350 claimed above and the cost cutting has just started.

    Currently, management are busy closing offices and outsourcing qa, developers, analysts, pm and customer service roles to junior employees in India.

    Not sure what all of the customers think about the outsourcing of these roles, I expect they will not be pleased.

    Think about it :-

    Country and regional specific banking domain knowledge GONE.
    Dev, QA, Analyst intimate knowledge of products GONE.
    Customer Service reps who know the product and the customer GONE.

    If you have worked in FinTech, you know that you cannot just hand over the keys and expect it all to work, these systems are complex, think a junior team member who knows very little about a product woken up in the middle of the night in India will be able to resolve production outages in a timely manner.

    Management has clearly failed understand the businesses, nor did they speak to customer or understand what the problems are, if they had, they would not have made such deep cuts.

    It’s really quite simple, invest in the business to keep customers happy, customers bring in revenue and that brings in more business by cross selling, start taking shortcuts and put the customer last and shareholders first, your reputation suffers.

  • P 13 October, 2017 at 2129

    Does anyone know which divisions this is affecting? CreditQuest/LaserPro, Phoenix core, etc.? I was told that they were offshoring many development, implementation and support positions to India and having some people who were laid off train their replacement.s

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