Jana Partners urges Fiserv to double cost cuts, adopt Palantir

by@Reuters

Summary

Activist investor Jana Partners is pressuring Fiserv to significantly increase its planned cost cuts and to utilize products from software company Palantir to enhance its technology transformation. In a letter viewed by Reuters, Jana, which has been invested in Fiserv since late 2025, argues that the company's current target of $500 million in cost savings by 2029 under its 'Project Elevate' should be more than doubled to $1.25 billion. This push follows Fiserv’s recent struggles, having lost over half of its market value in the past year, leading Jana to advocate for higher benchmarks and the public announcement of these targets during the upcoming third-quarter earnings release. Jana Partners has a history of advising its portfolio companies, such as Mercury Systems, to engage with Palantir, which is aimed at improving operational efficiencies.

Tokens

$FISV$PLTR

Analysis

Fiserv: Fiserv is a payments and financial technology company focused on processing and technology solutions for financial institutions. In this news, the company faces pressure from activist investor Jana Partners to expand its Project Elevate cost-cutting initiative and integrate Palantir software for technology modernization and efficiency gains. Palantir: Palantir develops software platforms for data integration, analytics, and operational efficiency across commercial and government sectors. The news highlights Jana Partners recommending its tools to Fiserv to address technology debt, streamline legacy systems, and support accountability in cost and transformation efforts. Jana Partners: Jana Partners is a New York-based activist hedge fund that targets underperforming companies to drive strategic and operational changes. Here, the firm has escalated its campaign at Fiserv following a July portfolio review push, sending a letter urging bolder cost targets and Palantir adoption while drawing on its experience with similar interventions at other firms. Scott Ostfeld: Scott Ostfeld is Managing Partner and Portfolio Manager at Jana Partners and serves as a director at specialized defense contractor Mercury Systems. The coverage notes his involvement in a recent strategic partnership announcement between Mercury Systems and Palantir to automate operations and improve efficiency. Takis Georgakopoulos: Takis Georgakopoulos serves as Chief Executive of Fiserv, having assumed the role in June. In the reported developments, he has discussed the company's ongoing business review and potential further divestments amid activist pressure for accelerated changes. Activist Engagement: Jana Partners is actively pursuing board and strategic changes at multiple companies including Cooper Companies and Six Flags Entertainment. Technology Application: Jana Partners has previously advised portfolio companies to partner with Palantir, as seen in the August announcement of a strategic collaboration at Mercury Systems.

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