Convergys to Lay Off Workers, Moving Jobs to the Philippines
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A day before the release of the 4th quarter financial results of outsourcing company Convergys Corporation (NYSE:CVG), they announced plans to lay off many of its employees, without disclosing how many and which locations would be affected.
The company calls it a “fine-tuning” of its business, as a form of global restructuring to align the company’s costs with its revenues. This news was imparted to its employees in preparation for the move on Monday, Jan 25. Little did Convergys’ employees know, however, that a very different announcement was being given in another part of the world.
A press conference was held, also on Monday in the Philippines wherein the Convergys country manager announced the company’s plans – not to lay off workers, but actually, to hire 6000 more people to join their team.
With the recent release of Convergys’ 4Q results for 2009, it seems that, although the company achieved better than expected results even with a slight decline in revenue, the company does not wish to take any more chances. Thus, as a ploy, the company has decided on maximizing its revenues by moving jobs from other countries to cheaper outsourcing destinations, case in point, the Philippines. And although it’s likely that this move will certainly foist Convergys to renewed criticism especially from the soon-to-be unemployed workers, this only shows that Convergys is relieved to be ‘back in black’ revenue wise, and it certainly plans to stay there.
Tags: BPO, Convergy's, Offshoring, Outsourcing, philippines
February 3rd, 2010 at 11:15 am
its a good news for the people of Philippines. Too bad for those who would lose their jobs.
February 9th, 2010 at 2:13 am
Perhaps, people in North America and Europe may want to migrate to Asia-Pacific where the jobs are.
February 11th, 2010 at 3:46 am
It is a good news for the Philippines. We just hope that there will be more available jobs for the Filipinos and help their economy grow more.