News

Concord EFS to cut workforce by 10 percent

January 24, 2002

MEMPHIS, Tenn. -- Concord EFS, Inc. (Nasdaq: CEFT), has announced a company-wide consolidation plan to expedite the integration of recent network acquisitions, including Star Systems, Inc., which was acquired by Concord on Feb. 1, 2001.

The three-part plan includes consolidation of data centers and other facilities to eliminate redundancies; reassignment or termination of certain employees timed to coincide with the integration of redundant processing platforms; and functional integration of the STAR organization into Concord.

Approximately 250 employee positions, or about 10 percent of Concord's work force, are expected to be eliminated through a combination of layoffs and attrition. The company expects to incur a one-time charge, net of taxes, between $75 million and $90 million in the first quarter of 2001 in conjunction with the consolidation plan.

Dan Palmer, Concord chairman and CEO, said, "While our recent acquisitions have added new technology and management talent, they've also created areas of operating redundancies. Phase two of our multi-year plan is to take steps over the next 12 months to capture synergies within our network operations, and align our resources across the enterprise for greater efficiency and improved service delivery."

Palmer added, "We believe that the proactive steps we're announcing today will position us well for continued profitable growth."