It is clear that cost-reduction strategies are a coping mechanism for difficult economic conditions.
However, I think the cuts at Fiserv were much larger than they should have been and it is increasingly noticeable that they had negative implications for the company.
Do you also think the cuts went too far and sent Fiserv on a downward cycle?
8 replies (most recent on top)
Was the uniform a black hood? Maybe Frank's data was an executioner?
Frank has one playbook - cut people expense. If only he had ideas to grow revenue. Frank says he comes from a Dad who wore a uniform to work but there’s no bigger enemy of the low level worker than Frank.
June 30 hundreds of associates dismissed, remember the date in my view it is the tipping point. While by no means the last wave account processing, ISO's our customers have had enough. On the plus side if you're in Fiserv legal very busy times ahead good luck all.
Ready, fire, aim. No change control, no plan...until after the fact.
One word..Gutted like a fish.
Typically a team will strategize to determine how they are going to accomplish everything. Now, after the cuts, they are planning to fail. They know they can't accomplish everything and are now attempting to accomplish at least the bare minimum. If anything goes wrong they will not achieve the bare minimum.
I think Frank being a clown is what is hurting the business. He will end up shutting down more locations in the future (e.g., Lincoln) to reap some short-term gains, but ultimately it's too late and the entire company will implode. Nice going, Frank. The sad part is that when the company does go under, he will just blame JY, or the current state of the world.
Yes, I think the cuts happened without having a good transformation strategy. They are basically dumping as many people as possible and hoping for the best. In this case, customers are now suffereing and dumping their contracts with Fiserv. FB is focused on transaction processing revenue, but if we are in a recession the company is now exposed to risk that it never had before with banking core and billpay revenue. If transaction processing slow's down. It wont make as much money.