TeleTech Reports Q1 Income, LayoffsTeleservices firm TeleTech Holdings reported a net income of $8.4 million during the first quarter and said it had initiated a cost-cutting program that included the layoff of 300 employees.
The cost-cutting measures also included the shutdown of an underused call center, the location of which was undisclosed, the company said in its financial statement, which was released after the market closed Thursday.
As a result of the cost-cutting efforts, TeleTech incurred a one-time charge of $20.3 million, resulting in an overall loss of $3.9 million for the first quarter.
The Denver company said the cost-cutting measures were enacted to address the current economic environment and to ensure long-term profitability for TeleTech. The company predicted $225 million to $230 million in revenue for the second quarter, compared with $237.9 million in the first quarter.
TeleTech operates 43 contact centers worldwide, including 26 centers outside the United States. The company has 23,000 employees.