First Data - KKR's "Window Dressing Exercise" no Solution to Revenue Problems | Glassdoor
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Helpful (1)

"KKR's "Window Dressing Exercise" no Solution to Revenue Problems"

Star Star Star Star Star
  • Work/Life Balance
  • Culture & Values
  • Career Opportunities
  • Comp & Benefits
  • Senior Management
Former Employee - Director
Former Employee - Director
Doesn't Recommend
Negative Outlook
Disapproves of CEO

I worked at First Data full-time (More than 5 years)

Pros

Great people and talent. Good legacy products.

Cons

No loyalty to those that have invested many years of service and/or have contributed in a major way to First Data's bottom line. No path for professional development. Losing lots of good people and talent for the sake of short-term bottom-line impact. Lack of innovation to keep pace with market changes in payments arena. Near-term cost cutting will continue and employee moral is on a steep decline.

Advice to Management

KKR is acting in a very predictable manner with its largest investment asset. KKR's patience is in the rear view mirror, seeking to IPO First Data in the near term. Unfortunately, KKR has lost sight of the importance of innovation due to it's "financial blinders". My advice to KKR - you better pay attention to who is biting at your heals rather than manually bailing the water out of a sinking titanic. The sad truth to the Private Equity game that is currently being played out with First Data is that KKR's efforts to position First Data for an IPO by eliminating vast amounts of IP (ie.."well Mr Investor, the bottom line looks fine to me) neglects to consider one of the most important ingredients, the run rate of net new revenue. If KKR spent half the time it spent laying off good talent on understanding how they could generate net new revenue, then things might be different for their investment horizon. Being a large player in the payments space is a huge competitive disadvantage and KKR is desperately trying to hang on to the back (where's the innovation?) of a fast moving train on the payments railway. At the moment, KKR is simply throwing heavy luggage out the back of the C130 cargo ship in hopes that the improved fuel economy with make it fly further...the problem with this strategy is the fact that the engines haven't been serviced in way too long and there are only two solutions to the problem a) a mid-flight surgery (ie fire sale), or b) and unpleasant crash landing far short of the landing strip (need i explain?). Hate to say it....yet the debt load/investment needs to be heavier on the innovation front and rev run rate needs to have a pulse before the public will "buy-in" to an IPO. Perhaps a lesson in AGILITY is in order. Bringing on Jon Judge was the best thing that happened to First Data in the past several years as he really did care about the things that matter most....only to leave First Data at the hands of those whose priorities are elsewhere. At the end of the day, this is a classic case of KKR biting off more than it could chew...which will most likely result in some serious heartburn, not just for those getting riffed, but for those whose pocketbooks will be adversely impacted. Perhaps a new acronym is in order...along the lines of Keep Kleenex Ready!

Other Employee Reviews for First Data

  1. "A good company to work for, but they are moving many jobs away from Denver."

    Star Star Star Star Star
    • Work/Life Balance
    • Culture & Values
    • Career Opportunities
    • Comp & Benefits
    • Senior Management
    Current Employee - Anonymous Employee in Denver, CO
    Current Employee - Anonymous Employee in Denver, CO
    Doesn't Recommend
    Negative Outlook
    Disapproves of CEO

    I have been working at First Data full-time (Less than a year)

    Pros

    Great co-workers, decent office environment and nice location in Denver. Average benefits.

    Cons

    Another company deciding to move locations at the expense of their human capital. I am disappointed.

    Advice to Management

    Find better ways to keep good talent and be loyal to your employees.


  2. Helpful (3)

    "Company Plummeting Downhill at Breakneck Speed"

    Star Star Star Star Star
    • Work/Life Balance
    • Culture & Values
    • Career Opportunities
    • Comp & Benefits
    • Senior Management
    Current Employee - Anonymous Employee in Greenwood Village, CO
    Current Employee - Anonymous Employee in Greenwood Village, CO
    Doesn't Recommend
    Negative Outlook
    Disapproves of CEO

    I have been working at First Data full-time (More than 8 years)

    Pros

    They used to value their employees and give them a reason to work for First Data, other than just for a paycheck.

    Cons

    First Data is in massive debt, and is doing everything (EVERYTHING) that it can in order to show profitability so it can move to IPO status. This includes laying off a substantial percentage of its US workforce, changing its matching 401k to providing stock that doesn't even exist yet, taking away three personal days, no longer matching gift contributions, and going to a terrible high-deductible health care plan. What's next on the horizon? Taking away vacation time? Charging for parking? Even if First Data somehow manages to become profitable (and this is unlikely in the extreme), it will be at the expense of its employees. They will gut themselves to become a shell of a company, with few employees left who care any longer.

    Advice to Management

    Be truthful with your employees. Don't make a big point about how honest you are, and how much you care, when at the next moment you shove the proverbial knife into their backs. No company will be successful without the caring backbone of its employees.


There are newer employer reviews for First Data
There are newer employer reviews for First Data

See Most Recent

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