Article Highlights
Layoffs are expected or may already be happening at Cubic Transportation Systems, which the vendor appears to attribute to a “new operating model” that it has yet to define. Observers believe offshoring of software development is responsible for at least some of the job cuts, with CTS’ parent under pressure to reduce costs and cut debt
CTS learned that a huge long-term client, Transport for London, chose rival supplier Indra Systems for the authority’s revenue-collection contract. It’s the kind of lucrative operations and maintenance contract–estimated to be worth as much as £1.5 billion (US$2 billion) over 12 years–that Cubic needs to satisfy skeptical credit rating agencies.
• Cubic
• TfL (London)
• Indra
There is growing talk of layoffs at Cubic Transportation Systems, although it’s unclear how many employees will lose their jobs.
When asked, a Cubic spokesman did not immediately address the job cuts, but instead told Mobility Payments said that the large fare-system supplier is “implementing a new operating model.”
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