The Marianna closing is the ninth scheduled for 2004, bringing the total layoffs this year to more than 2,500.
By SCOTT BARANCIK
Published August 5, 2004
TAMPA - And then there were five.
Sykes Enterprises has informed Florida officials that it will close its Marianna call center Oct. 2. The disclosure came just weeks after the Tampa company said it would shutter its only other Florida call center, located in Palatka.
The announcement Tuesday brings to nine the number of U.S. call centers that Sykes plans to close in 2004. Only five other U.S. call centers will remain: Bismarck, N.D.; Wise, Va.; Morganfield, Ky.; Ponca City, Okla.; and Sterling, Colo. At one time, Sykes had nearly 20 call centers in the United States.
Sykes said it will lay off 145 of its Marianna employees Saturday and the remaining 121 on Oct. 2. Total layoffs among the nine facilities to be closed this year is expected to exceed 2,500.
An outsourcer, Sykes handles customer service for such clients as Microsoft and SBC Communications via its global network of nearly 40 call centers. Like many of its competitors, the company is shutting down U.S. call centers and opening up new ones in offshore locales like the Philippines and India, where relatively low wages allow Sykes to meet client demands for reduced pricing.
Analyst Brandon Dobell of Credit Suisse First Boston said in a research memo this week that Sykes' migration overseas is a good strategy, and he continues to rate its stock a "buy" despite recent setbacks.
"The economics of the offshore opportunity continue to be compelling, driven by a labor arbitrage between the U.S. and countries with large, well-educated English speaking populations," he wrote. "(Sykes) is the best way to play the offshoring trend."
Sykes opened its Marianna and Palatka call centers in early 2001.
Separately, Sykes confirmed that it fired eight members of its 15-person "Americas" sales force last week. The company's Americas division covers call centers located in the United States, Canada, Latin America, India and the Pacific Rim.
"If the sales were stronger," spokesman Jeff Tucker said, "the people would probably still be employed."
