SS&C Layoffs: Is still cuts jobs in 2024?

SS&C Layoffs

An American global financial technology business with its corporate headquarters in Windsor, Connecticut, is called Securities Software & Consulting (referred to as SS&C). It serves the financial services sector by selling software and offering software as a service. The company maintains offices in the Americas, Europe, Asia, Africa, and Australia.

SS&C Technologies, Inc. is a top global provider of mission-critical, cloud-based software and solutions for the financial and healthcare sectors. SS&C is a reputable supplier to more than 20,000 businesses in the financial services and healthcare industries. It was named to the Fortune 1000 list as a top U.S. firm based on revenue.

SS&C powers some of the world’s most prominent financial and healthcare organizations. The business was founded on knowledge, innovation, and superior customer service. It operates in more than 40 countries and has around 25,000 employees. SS&C’s employees have witnessed several layoffs. Let us view it in detail in this article.

Overview of the company

In 1986, William C. Stone established SS&C. In 1996, the business underwent its first initial public offering process. SS&C Technologies’ acquisition strategy aimed to expand the company’s expertise and product offerings. It has bought more than 50 companies since 1995.

SS&C specializes in particular fintech areas. It includes fund administration, wealth management accounting, insurance, and pension funds. It achieves this through its several acquired companies. They are Advent Software, Varden Technologies, Eze Software, and Primatics Financial. Over $1.69 trillion in assets under custody (AUC) were declared by SS&C Technologies on its balance sheet in 2020.

SS&C eliminated hundreds of jobs in 2018

As per regulatory filings, after acquiring DST Systems Inc. for $5.4 billion in 2018, SS&C Technologies Holdings Inc. has started to fire 900 workers.

At that time, the job losses were projected to affect DST and its subsidiaries. It also cost SS&C up to $70 million in severance and related costs. The company stated these in its U.S. Securities and Exchange Commission filing. According to the business, most job layoffs began in June 2018 and would last through December 2018.

As of 2018, DST, situated in Kansas City, Missouri, employed about 4,000 people there. There were hundreds of layoffs, according to a Kansas City Star story. The Star also stated that the layoffs would affect 6% of SS&C’s global operations.

SS&C, which is placed No. 39 on the 2018 CRN Solution Provider 500, focuses on software and services for investment management. The Windsor, Connecticut-based company acquired DST to expand its portfolio of healthcare-focused software solutions. It also aimed to strengthen its financial software capabilities.

The price at which SS&C acquired DST was $84 per share plus the assumption of debt, valuing the deal at $5.4 billion. The merger formed a $3.9 billion solution provider behemoth with a combined clientele of over 13,000 customers.

DST employees were affected by the company-wide layoffs at SS&C (2020)

According to 2020 reports, SS&C, which acquired DST Systems Inc. at the beginning of 2018, has let go of about 3% of its staff worldwide. It mostly had an impact on its financial technology division in Kansas City.

According to SS&C Technologies Holdings Inc., there were more than 22,000 workers in 2020. That would put the number of people being let go at around 660. How many employees in Kansas City were allowed to go in May 2020? SS&C wouldn’t answer.

With 4,990 local full-time equivalent employees, DST placed No. 7 on the Kansas City Business Journal’s Top Private-Sector Employers List in 2017. Since purchasing DST for $5.4 billion in April 2018, SS&C has not provided any information upon request.

According to an email from an SS&C representative in 2020:

“SS&C made the painful decision to downsize our employees. This was made in response to growing competition and the recognition of active and passive money flows. We reduced the global staff of SS&C by less than 3%, as planned. This reduction mostly affects non-client-facing support staff and specific DST Technology groups.”

“We are reorganizing some teams to better serve future demands and streamline operations. It’s because we update our technological stack. In turn, this improves reaction times and driving economy. We are still very dedicated to our customers, our staff, and the company. We have boosted investment since acquiring DST, enhanced execution, and kept up innovation.”

Since buying DST, the company has had further layoffs besides this one. As mentioned, SS&C announced in June 2018 that 6% of its global staff would be let go.

In July 2020, the old DST corporate offices at 333 West 11th Street became available for leasing. According to its website, SS&C lists 333 W. 11th St. and 1300 Washington St. as its Kansas City locations. In other headlines, CloudMargin employs a CTO, State Street promotes a CTO, and Tier 1 acquires Satuit.

For Layoffs, SS&C mentions Cost Containment

Under a presentation of financial data for the first quarter of 2021 and the entire year, which concluded on March 31, 2021, SS&C has let go of 2.2% of its worldwide staff.

Bill Stone, chairman and CEO of SS&C, made the following remarks at the presentation on April 26, 2021: “In March 2021, we reported a decrease in force of 2.2% in our global employee base. Since the first quarter of 2020, we have postponed our plans because these choices are never easy. We have treated everyone properly and will do so in the future, besides offering severance and transition support.”

According to media and business reports, SS&C employs 22,000–25,000 people. This equates to 480–550 roles (0.22 of either number). Officials from SS&C declined to give any extra information about the layoff beyond the presentation.

The needs of the markets for SSC services and the ongoing drive for innovation are the driving forces behind the workforce reductions.

“Innovation and increased general productivity are required by the markets we service and our clients. These demands frequently impose cost-containment measures. We must properly manage our costs if we want to keep offering pay hikes, bonuses, and other professional development opportunities,” Stone added.

Revenues for the first quarter of $1.233 billion were reported in the SS&C financial results. According to company officials, it was up 5.1% from $1.173 billion in the same period of the previous year. The vendor posted a $174.9 million first-quarter profit. SS&C declared total revenues of $4.667 billion for the entire year 2020.

In a prepared statement, Stone stated that “as we rise from this global epidemic, our pipelines are building. Also, our workforce is growing, and we intend to deliver client solutions.”

According to Stone, “We are developing a number of new technologies. This includes institutional and investment management, insurance, and transfer agency next-generation solutions. The need for cloud-based solutions has increased, and the digital experience has improved. Also, user interfaces have been made simpler as a result of the previous 12 to 14 months( as of April 2021). We are eager to profit from these developments.”

Conclusion

On August 2, 2023, SS&C Technologies Holdings, Inc. released forecasts for the third quarter of 2023 from the SS&C Intralinks Deal Flow Predictor. It is a quarterly publication of upcoming merger and acquisition (M&A) announcements.

The banking and real estate sectors continue to be a source of concern. But Ken Bisconti, co-head of SS&C Intralinks, noted that there are signs that market confidence is growing. “Deal flow is improving after a challenging start to the year. Some industries, including technology, provide appealing opportunities. Overall, we continue to have a cautiously optimistic outlook for H2 2023 volume. It is especially true if the equities markets continue to improve and inflationary pressures subside.”

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