Tip Sheet: Layoffs at Cubic–Vendor Says It Amounts to Only 2% of Workforce but Won’t Release Figures; Insiders Say Cuts Taking Toll on Engineers, Others
U.S.-based Cubic Transportation Systems has yet to release a total for the number of employees it plans to lay off, but Mobility Payments is hearing it could be 15% or more across certain job categories, such as engineers, architects and project managers outside of India. Cubic emphatically denies this estimate.
When asked to quantify the job cuts and how they compare to Cubic’s global workforce, a spokesman for the vendor would only confirm to Mobility Payments that “2% of employees are being laid off.”
In Harsh Response to Cubic’s Lawsuit, Transport for London Contends It Could have Rejected Vendor on Several Grounds
Transport for London contends that it would have rejected Cubic Transportation Systems’ tender for the agency’s revenue-collection contract even if the vendor had not been automatically knocked out of the competition by failing the first technical question, TfL states in its first response to Cubic’s lawsuit.
The transport agency’s highly critical response or defense, filed just days ago in the High Court of Justice in London, largely reveals for the first time why TfL chose Indra Systems over Cubic.
Tip Sheet: Layoffs Expected at Cubic; Fare Vendor Discloses ‘New Operating Model,’ Though Releases Few Details
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 that the large fare-system supplier is “implementing a new operating model.”
Vancouver Transit Authority Issues RFP for Major Fare-System Upgrade; Believed to Have Rejected Sole-Source Proposal
Vancouver transit authority TransLink has issued a request for proposal to upgrade its fare-payments system, a project that could be worth an estimated CA$507 million (US$360 million) in capital expenses alone.
The estimate comes from TransLink's 2025 Investment Plan, approved in April. The plan (download below), spreads design, implementation and installation costs largely over five years, though 2031. No figure is available yet for operations and maintenance.
"These are preliminary estimates; the final budget will be determined once we have identified a vendor," a TransLink spokesman told Mobility Payments.
Maitland Out at Cubic; CTS President Montgomery-Torrellas to Take Over ‘Growth’ Position Himself
David Maitland, who headed business development for Cubic Transportation Systems, is out after fewer than 18 months with the struggling fare-system supplier, Mobility Payments has learned. The vendor does not plan to hire a replacement.
Cubic in internal communication (see below) is officially calling Maitland’s departure a “retirement.” But most observers believe he was essentially forced out. They believe Maitland left because
Update on Swedish Procurements, including Recent Validator Competition Attracting Nine Bidders
Sweden’s price-focused, modular market for ticketing procurements is seeing more activity, with at least two decisions in, though pending appeal, and others headed for tender. That is believed to include a tender request expected for early next year for the largest city, Stockholm, Mobility Payments has learned.
In the competitive Swedish market, transport agencies are mainly shopping for new validators, which will need to be able to support open-loop payments, at least eventually.
Cubic’s Recently Installed Head of Europe Departs Abruptly; Maitland Under Pressure
William Wilson, who took over Cubic Transportation Systems’ EMEA region only six months ago, has left the company abruptly, Mobility Payments has learned. It’s not clear whether he quit or was fired.
Wilson, former CEO of Siemens Mobility’s UK subsidiary, for which he oversaw over 5,000 employees and more than £1 billion in turnover, had joined Cubic in May. CTS President Peter Montgomery-Torrellas announced his departure internally Oct. 10. (Download Montgomery-Torrellas message to Cubic employees below.)
Cubic Contends It was Low Bidder and should have Won London Contract; Claims Unfair Treatment, Possible Conflict of Interest as Details of Lawsuit Emerge
Cubic Transportation Systems contends that it submitted a lower bid than rival Indra Systems for Transport for London’s revenue-collection contract and says it should have won the contract but alleges it was treated unfairly in the competition for the lucrative deal.
Cubic made the claims in its lawsuit against TfL seeking to overturn the agency’s decision in July to award the contract to Indra. Among the problems that Cubic’s lawyers spotlighted in their particulars of claim filing for the suit was the fact that two former TfL employees work for consulting firm Rebel Group, which advised Indra on its bid–raising the potential for a conflict of interest. (Download the particulars of claim, which lays out Cubic’s legal case, below.)
Tip Sheet: Cubic Believed to be Sole Vendor in Running for Sydney Deal; TfL: Revenue-Collection Procurement Not Over Yet; Madrid Seeks ABT System
Latest Intelligence on Sydney, London and Madrid procurements. Have a tip for the Tip Sheet? Write to contact@mobility-payments.com
It’s looking more and more likely that Cubic Transportation Systems is the sole supplier still in the running for Transport for New South Wales’ back-office contract, thanks, at least in part, to concessions
Updated: Cubic Short-Listed for Must-Win Sydney Contract; Hitachi Rail, Others, Believed Out
Transport for New South Wales in Sydney has short-listed incumbent supplier Cubic Transportation Systems for its new back-office contract along with a second vendor, while Hitachi Rail and a few other suppliers are believed to have missed the cut, Mobility Payments has learned.
The fact that Cubic likely lost its valuable revenue-collection contract with Transport for London (Cubic filed suit last month to appeal TfL’s decision to award the contract to rival vendor Indra Systems), makes it even more critical for Cubic to win in Sydney.