Convergys Cutting 950 Workers
Teleservices provider Convergys Corp., Cincinnati, said Friday that it will cut 950 employees through layoffs and attrition and will consolidate several facilities.The cuts will occur between now and the end of 2003, Convergys said. Details about which facilities would be consolidated were not disclosed.
The company expects to incur restructuring charges of $90 million to $110 million in fourth-quarter 2002. Convergys will begin realizing savings from the cuts in 2003, the company said.
Convergys president/CEO Jim Orr said the cuts were prompted by continued weakness in the global market in 2002, particularly in the communications industry, and by rising overhead costs for wages, healthcare, pensions and insurance. Convergys expects this "challenging environment" to continue in 2003, Orr said.
