Sixty people in Omaha have lost their jobs as part of a restructuring of First Data's financial services business.
The Atlanta-based payments processing firm told employees Wednesday a total of 125 workers at all levels would be laid off as the company looks for ways to cut costs.
“To remain competitive, First Data must continually examine ways to create efficiencies and find improved ways of delivering our products and services to our customers,” the company said in a statement. “We have been restructuring the company to simplify and streamline our work to be more innovative and customer-focused.”
Eligible employees will receive severance pay and job placement services.
“These decisions are never easy to make and we understand the impact on people's lives,” the company said. “We are committed to doing everything that we can to support impacted employees through this transition.”
The action affects about 1 percent of First Data's local employees. The company has a total employee base of about 5,000 in Omaha and about 24,000 worldwide. About 80 percent of Omaha employees work in operations and technology, with the rest in corporate office roles including finance, human resources, sales and legal.
It is the first sizable layoff since July 2010, when the company eliminated 50 jobs here and 355 companywide, mostly management positions.
Between November 2007 and July 2010, the company laid off about 800 employees in Omaha.
The company was acquired in 2007 by private equity firm Kohlberg Kravis Roberts & Co. After the acquisition it announced plans to cut about 6 percent of its global workforce of about 29,000.
First Data has reported a net loss each of the last five years, including a loss of $701 million in 2012 on revenue of $10.7 billion.
First-quarter results will be released April 30. Former chief executive officer Jon Judge announced in January he would retire early because of health reasons. Ed Labry, president of First Data-North America, is serving as interim CEO.
Contact the writer: 402-444-1336, email@example.com