Morningstar Layoffs Could Hit More Than 200 Employees: Report

A Morningstar representative confirmed plans to cut up to 12% of the firm's Sustainalytics unit, Reuters reported.

Morningstar plans to cut 10% to 12% of its Sustainalytics unit staff, a company representative confirmed this week to Reuters, which estimated the move could mean more than 200 will be laid off.

While the company didn’t give a specific number of jobs to be cut, the wire service noted Wednesday that Sustainalytics describes itself on its website as having a “1800+” team, which suggests layoffs in the 180 to 216 range.

The unit, acquired in 2020, handles research and ratings on environmental, social and governance, or ESG, features for Morningstar.

Reuters noted that IPE.com had previously reported the news. That news site, attributing the information to multiple unidentified sources, reported Wednesday that employees were told in a town hall meeting the previous day that Morningstar would cut 150 to 180 Sustainalytics jobs next week.

IPE.com also said it understood sustainability bond assessment teams in Singapore and Hong Kong already were dismissed in June.

Morningstar in June said it would align Sustainalytics more closely with its index businesses, according to Reuters, which quoted the company representative as saying this week that the firm is making adjustments to strengthen its financial footing as part of the alignment while remaining committed to investing in ESG capabilities.

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