Financial services firm Morningstar is reportedly to cut the global workforce of its ESG service provider arm Sustainalytics by 10-12% as it integrates the firm into its indexing business.
According to news reports, Morningstar has confirmed that it will let go of 10 to 12% of its Amsterdam-based Sustainalytics business representing between 150 and 200 employees. It is not clear in which departments or geographies the layoffs will take place.
A Morningstar spokesperson said: 'As a part of this alignment, we are in the process of making adjustments to strengthen the financial footing of the business. Unfortunately, headcount reductions in addition to other expense reductions are part of the mix. While it has been a very difficult decision, we plan to reduce our global headcount at Sustainalytics by 10-12% to ensure we can get the business on healthy financial footing to be able to move forward and grow.'
Sustainalytics was officially founded in 2009 by Canadian sustainability expert Michael Jantzi. In 2020, Morningstar – which already owned 40% of the firm – bought it outright.