##  [# Morningstar to Cut up to 12% of Staff at Its ESG Services Provider Unit](/sections/news/morningstar-cut-12-staff-its-esg-services-provider-unit) 

 

# Morningstar to Cut up to 12% of Staff at Its ESG Services Provider Unit

 

 

More than 200 employees may be laid off at Amsterdam-based Sustainalytics.



 

 

 

 

 [![etf](/sites/default/files/styles/author_image_icon/public/2023-03/etf_com_logo.png?itok=tX9VZitZ "etf")](/contributors/theo-andrew) 

[By Theo Andrew](/contributors/theo-andrew)

 Sep 21, 2023

 Edited by: Mark Nacinovich

 

 

     Share  <a class="a2a a2a_button_email"> Email </a><a class="a2a a2a_button_linkedin"> LinkedIn </a><a class="a2a a2a_button_facebook"> Facebook </a><a class="a2a a2a_button_x"> X (Twitter) </a> 

 

 

 

 

 

 

 

 

  
            googletag.cmd.push(function() {
                googletag.display('js-dfp-tag-article_page_302x26');
            });
    
    

 

 

  

 



 

 

  Loading 

 

 



 

 

Morningstar will cut the global workforce of its [ESG](https://www.etf.com/topics/esg) (environmental, social and governance) service provider arm Sustainalytics by 10-12% as it integrates the firm into its indexing business.

The decision comes after Morningstar said in June it would move to align more closely with Sustainalytics.

## **More Than 200 Layoffs Possible**

Amsterdam-based Sustainalytics employs more than 1,800, according to its website, meaning job losses could exceed 200.

“As a part of this alignment, we are in the process of making adjustments to strengthen the financial footing of the business,” a Morningstar spokesperson said.

“Unfortunately, headcount reductions in addition to other expense reductions are part of the mix. While it has been a very difficult decision, we plan to reduce our global headcount at Sustainalytics by 10-12% to ensure we can get the business on healthy financial footing to be able to move forward and grow.”

Morningstar didn’t disclose which employees would be affected by the cuts.

 
            googletag.cmd.push(function() {
                googletag.display('js-dfp-tag-in_article_unit');
            });
    
    

 

 

## **Morningstar Bought Business in 2017**

Morningstar acquired a 40% stake in Sustainalytics in 2017 before buying it outright in 2020 after paying a lump sum of $59 million and two further cash payments amounting to a total valuation of $181 million.

Sustainalytics was one of the key contributors to Morningstar’s organic revenue growth in the second quarter of this year, which grew 12.7%, driven by strong demand for regulatory compliance in [Europe](https://www.etf.com/topics/europe).



 

 

 [ Theo Andrew ](/contributors/theo-andrew) 

 

 

  Theo Andrew joined ETF Stream as a senior reporter in September 2021. He has over four years of investment writing experience spanning pensions and…   [View Bio](/contributors/theo-andrew)

 



 

 


 Related Topics  [ESG](http://www.etf.com/topics/esg) 

 [Europe](http://www.etf.com/topics/europe)