What does this mean for us? What can we expect? How impacted is Fiserv's business by this crisis? Which business units are most affected? So many questions! Feeling pretty in the dark... Can anyone weigh-in on this?
16 replies (most recent on top)
Anyone hear about pay cuts instead of or in addition to layoffs?
A 20% staff reduction would not surprise me
Maybe frank can get some other s—er to buy fiserv after he wrecks it. Sorry Jeff your legacy is you got played. No book deal
The non-liked FB policy of working from home proves that the office can be managed by far fewer staff. Cuts will continue to come for whatever reason they come up with. You are right to call Fiserv FIRST DATA now, that was true months ago. JY is taking no salary? BFD - Steve Jobs worked for $1 for several years but JY ain't no Jobs. More bad news to come.
The bottom line, work on your exit strategy, because there is a reason the First Data stock s—ed, CEO approval was so low and employee attrition was so high.
To answer the previous poster, absolutely not will this save any jobs. The same number of jobs will be cut regardless of the 401k cut-off. Two reasons a) Frank wanted to make changes to the 401k from the git go. They had already made changes in perks like reduce the stock purchase discount before this even happened. This was just a perfect opportunity to do it under the guise of Covid-19. b) The job cuts will occur along with the 401k match removal to meet numbers. That's what it's all about...numbers. Never be so naive to be led to think that any of this is ever about people. Don't let the internal posts fool you. Lastly, you can continue to call the place Fiserv but it's really First Data.
I get many companies are cutting the 401k match and that “might” be ok if it’s truly used to save jobs. But does anyone think fiserv will do any other than drastic job cuts next? Meanwhile look at the proxy statement DEF14a on the fiserv website to educate yourself on executive comp
If you’re at the director level banking more than $170/yr be very nervous
Jeff’s $840K base doesn’t even pay for renovating his new Malibu house.
So they played this card fairly quickly. Given the free cash flow of fiserv this wasn’t an immediate need. And yes for those that care the execs are in a different bonus plan than others that receive bonuses and a lot of folks receive no bonus. The exec bonus always pays out greater than 100%, the rest are lucky to hit 50%. I cannot even fathom the size of the headcount reductions being planned by these people.
In comparison to hard hit industries like hotels, franchises, retail, fiserv's impact to revenue is relatively minimal. Other than transaction based revenues, many financial services and feature requests from Banks, credit unions, etc should remain in demand. Cutting benefits to employees is a response to the likes of companies who have been chatastrophically impacted as in have no income at all and it seems like fiserv business is not impacted to that point. The Jeff and Frank response seems extreme?? However it seems like they are anticipating a long term hit to the stock and economy.
Hey Jeff gave up his salary in total, everyone should feel blessed
I would not expect 401K match to come back in a year. when FB took over OFD he eliminated the 401K match among other things. It was the last thing to come back and then it was far reduced from what it was. I would encourage everyone to increase their own contribution if they can, it is a great time to buy into the market.
It means you should reduce your ESPP contribution to 0. There is no reason to pay market price for FISV stock.
Well, so far it means that we have no 401K match for the year, No ESPP stock discount, and i would guess they are still going to get their bonus checks. I would also expect more layoff's as they find overlap between the two companies.
My mother always told me that if I didn't have anything nice to say.......