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Sitel lays off 123 workers

July 11, 2009 @ 12:00 AM

HUNTINGTON -- Sitel will lay off 123 employees from its Huntington office effective Aug. 2 after losing a major contract.

In a letter to Huntington Mayor Kim Wolfe, Sitel, a business process outsourcing provider, said it will reduce its workforce by approximately 105 customer service representatives and 18 support and management personnel.

"We apologize for not being (able) to give you and our employees more notice," the letter to the mayor said. "Unfortunately, the decision to disengage at this time was an unforeseen business circumstance."

In a letter to employees, Sitel said its client, XM Satellite Radio, has decided to disengage itself from the company. Sitel said it is exploring alternatives with XM Satellite Radio and other new business opportunities.

Huntington Deputy Mayor Tom Bell said the administration is very disappointed that Sitel lost its contract. Bell noted the reduction in workforce is a reflection of the industry and not a reflection of the Huntington operations.

"I deeply regret the impact of the loss of business to Sitel and the effect it will have on our citizens," Bell said. "We remain confident that Sitel will be able to find customers and recall the laid off people."

When XM Satellite Radio entered into the partnership in February 2007, the Huntington Sitel office expanded its workforce by approximately 150 associates, according to a press release on Sitel's Web site.

In September 2008, Sitel announced it was consolidating its two Huntington locations into one, but planned to retain all of its roughly 200 local employees.

Sitel was formed by the January 2007 merger between ClientLogic and SITEL, Corp.

Sitel provides business process outsourcing solutions in the U.S. to companies in every major industry, including automotive, financial services, insurance, healthcare, communications, travel and tourism, retail and technology. The company has more than 37 centers located in the country.