“Morningstar Announces Workforce Reduction at Sustainalytics”
Amsterdam-based ESG (Environmental, Social, and Governance) service provider Sustainalytics is set to significantly reduce its workforce, with over 200 employees expected to lose their jobs, according to an official announcement.
This decision follows an announcement by Chicago-based Morningstar in June, where the company expressed its intention to align Sustainalytics more closely with its Indexes business. Sustainalytics, known for its ESG services, currently employs over 1,800 individuals. Consequently, this reduction in force could result in around 200 job losses.
The announcement did not specify the departments or locations affected by these layoffs.
Morningstar spokesperson Sarah Wirth, responding via email to Reuters, explained, “As a part of this alignment, we are making adjustments to strengthen the financial footing of the business. We remain committed to growing our ESG capabilities and will continue investing in this area.”
She elaborated, “Unfortunately, headcount and other expense reductions are part of the mix. While it has been a tough decision, we plan to reduce our global headcount at Sustainalytics by 10-12 percent to ensure we can get the business on a healthy financial footing to move forward and grow.”
Sustainalytics played a pivotal role in Morningstar’s second-quarter organic revenue growth, contributing to a 12.7% increase. This growth was primarily driven by heightened demand for regulatory compliance solutions across Europe.
A version of this post originally appeared at https://www.investmentnews.com/morningstar-to-cut-12-of-sustainalytics-staff-243563
