Call center operator StarTek is laying off hundreds in Colorado – Denver Business Journal

StarTek Inc. is laying off 261 employees in Colorado Springs where it operates a call center.

The Greenwood Village-based company (NYSE: SRT) filed a warning about the downsizing with the state on Wednesday as required in cases of large layoffs.

StarTek operates 22 call centers in the U.S., Honduras, Jamaica and the Philippines, providing clients with customer-care operators and other outsourced business help. The company employs about 13,500 people worldwide.

StarTek’s revenue has been in decline. Its third-quarter revenue dropped 11 percent year-over-year to $69.4 million, an acceleration of the trend it saw throughout the year, according to its most recent quarterly filing with the U.S. Securities and Exchange Commission.

StarTek closed a call center in Tell City, Indiana, last spring.

The company did not immediately respond to inquiries for comment Thursday.

The Colorado Springs downsizing follows last week’s disclosure of a deal with a subsidiary of Seattle-based online retail giant Amazon.com that could be worth as much as $600 million to StarTek.

Amazon.com NV Investment Holdings LLC acquired the right to buy 4 million StarTek shares — about a quarter of the company’s outstanding stock — in exchange for up to $600 million. The agreement allows Amazon to purchase shares after StarTek hits undisclosed revenue milestones, suggesting StarTek could be doing a significant amount of business with Amazon.com.

The company has historically drawn more than two-thirds of its business from telecom and cable TV companies but has been trying to diversify and broaden into industries such as health care and retail.

Source Article

Be the first to comment

Leave a Reply

Your email address will not be published.


*