S&P Global Market Intelligence – the news and data division of credit ratings giant S&P Global – has laid off around 700 people in various offices around the world, including Canary Wharf, Hong Kong and New York City.
City A.M. spoke with three London-based employees who confirmed that among the redundancies are S&P GMI’s consumer and retail news teams, its automotive intelligence unit, parts of its healthcare and media & tech groups and most members of the company’s general markets team.
Executive editor Gary Regenstreif has left the company.
City A.M. understands employees were called into virtual emergency meetings earlier this week, one by one, during which their employment was terminated.
They were told the layoffs are not a result of the proposed merger between S&P Global and IHS Markit, which was agreed at the end of last year.
When contacted by City A.M., a spokesperson for S&P Global in New York City declined to discuss the details but he did confirm a restructure is currently taking place.
“After a comprehensive evaluation of our business, S&P Global Market Intelligence has made the difficult decision to restructure certain teams and roles,” he said.
“We thank the talented people impacted for their contributions and are committed to treating them fairly,” the spokesperson added.
IHS Markit deal
In November, S&P Global agreed a £33bn deal to acquire data firm IHS Markit in a move that will create a new financial services giant.
The price tag – which S&P paid in stock – was the largest deal in 2020, a boost for the market after the pressures of the coronavirus pandemic. The acquisition is still subject to final regulatory approvals.
The mega deal highlights the growing importance of big data in financial markets governed by trading algorithms as it followed a year after The London Stock Exchange’s $27bn purchase of Refinitiv, which was completed earlier today.
Ratings giant S&P was formed in 2011 when former parent firm McGraw-Hill spun it out from its education business.
The company is best known for providing credit ratings for countries and companies, as well as global market information.
HS Markit is perhaps best known for supplying the monthly Purchasing Managers’ Index (PMI), a measure of economic performance.
The company was formed in 2016 from the merger of data firm IHS and Markit, which was founded by former credit trader Lance Uggla. That deal was worth around $6bn.