AM I NEXT? NO LOVE AT STARTEK

 Am I Next? StarTek closing Colorado call center, 186 layoffs.

Greenwood Village, Colorado-based StarTek, a business process outsourcing company, is closing its customer contact call center in Greeley, Colorado and laying off 186 employees.

The company which has recently merged with Singapore-based Capital Square Partners is concentrating on servicing Amazon and expanding its presence in Asia. It is unlikely that this global enterprise will remain headquartered in Colorado. 

According to Lance Rosenzweig, President and Global CEO, writing in StarTek’s second quarter SEC filing, “The combination of STARTEK and [Capital Square Partners-owned]Aegis has created a truly global platform with more than 50,000 employees operating in 13 countries and servicing six continents.” 

“The timing of this combination was also important given the challenges to Startek’s business over the last year. In the second quarter, the company continued to work through lower volumes and lost programs from its top wireless clients, which impacted both revenue and profitability. The wireless industry continues to face disruption, which has resulted in a rapidly evolving environment for service providers. These soft volumes were partially offset by strong growth from cable/media and retail clients, as well as the early benefit of ramping one of the large, strategic client wins announced earlier in the year. Going forward, we expect our combined business to be much less volatile, as no one client will represent more than 10% of revenue.”

“We still have plenty of work ahead to replace the lost wireless programs and to integrate talent, experience, products and services across the combined organization. It will take several quarters to realize the benefits of our new global scale and footprint. Nevertheless, I strongly believe that our combined resources will enable world-class customer support for clients and produce operational synergies throughout the organization, which will drive growth and enhance profitability down the road. The opportunities ahead for Startek are just beginning, and I look forward to leading the team and all stakeholders into this next chapter of growth.”

Are you wondering, Am I Next?