TeleTech Keeps Client, Cuts Work Force
The client, which TeleTech did not name, represented 4 percent of the company's revenue in the first three quarters of 2002, or about $32 million. Despite this, the company said it would cut staff as part of a "continual review of its operations."
TeleTech did not specify which of its facilities would suffer the staff cuts. The company will record a one-time charge of $40 million to $50 million in fourth-quarter 2002 as a result of the staff cuts and the ongoing transition stemming from its buyout of Enhansiv Holdings Inc.
The announcement of the TeleTech jobs reduction follows news that teleservices providers ICT Group and Convergys plan staff cuts as well. Earlier this month, ICT Group said it would cut an unspecified number of U.S. employees as part of its transitioning of positions to overseas facilities, while Convergys said it would cut 950 employees as part of a facility consolidation.