Misys takes the axe to banking systems business
20 June 2006 | 9931 views | 0
In a trading update due Wednesday, Misys is expected to firm up details of a global restructuring of its banking systems business that is thought to have entailed up to 75 UK redundancies including the axeing of a number of high-profile managerial-level staff.
The vendor said in January that it was restructuring its core banking businesses into a single global entity following a 25% decline in first half operating profits at the division. At the time Misys CEO Kevin Lomax said the restructuring would include "a small number of job losses".
According to documents seen by Finextra, around 75 jobs were on the line at Misys' UK operations, including eight roles at the firm's development department, and 24 jobs are thought to have been cut at the vendor's Luxembourg operations.
The job cuts include a number of senior management roles. Clive Pedder, who was previously CEO of wholesale banking at Misys but later became COO, core banking, Misys Banking Systems, is thought to have left the company following the shake-up, along with Michel van Leeuwen, risk management CEO, Misys Banking Systems.
Misys is tight-lipped about the redundancies and has refused to comment ahead of a trading update scheduled for tomorrow.
The vendor originally hired Steve Vaughan to oversee the restructuring and assume responsibility of Misys' new core banking unit, which was created by the merger of its retail and wholesale banking operations. But Vaughan quit in April after just one month in the job pleading "material differences" with the company.
The firm has since become the subject of intense bid speculation with group CEO Kevin Lomax understood to be trying to raise funds for an MBO and fend off private equity interest in the business.