Activist Investor Presses Fiserv for Deeper Cost Cuts

Jana Partners wants Fiserv to more than double its planned cost savings and consider Palantir software. Investors will watch whether management adopts the proposals as it works to revive the payments company.

Fiserv is under pressure to move faster on its turnaround after losing more than half its market value over the past year.

Activist investor Jana Partners wants the payments company to increase its cost savings target from $500 million to $1.25 billion by 2029. Jana has also urged Fiserv to use Palantir’s software to identify technology savings and simplify its operations.

The proposals came in a letter viewed by Reuters. They are Jana’s recommendations; Fiserv has not announced the larger savings target or a Palantir partnership.

Fiserv’s new chief executive has already said the company is reviewing its businesses and could make further divestments. Jana wants management to set out a more ambitious plan when it reports third-quarter results.

The investor case rests on execution. Deeper savings could improve profits if Fiserv can deliver them without disrupting the services its customers rely on. Its next results will show whether management shares Jana’s view of how much more the business can cut.