RENO - An Ohio call center that recently laid off more than 40 workers is now closing altogether.
Last week, the India-based company Tata Business Support Services Ltd. announced it was closing its two U.S. call centers after it lost two key contracts. Company officials acknowledged the closure of both the Reno and Milton, Fla., centers, resulting in the layoff of 251 employees.
"As a result of the loss of two key contracts, Tata Business Support Services plans to close its facilities located in Reno, Ohio and in Milton, Fla. A total of 251 employees will be affected by these closures," read a statement attributed to Debbie McDonald, head of human resources and support services at the Milton facility.
Tata's U.S. call centers were established in 2006, offering a pay scale between $6-$10 an hour.
In 2007, the Reno call center, which employed about 250 people to answer calls for online sites such as Expedia and Hotwire, was featured in a Fortune Magazine article on "insourcing."
About a week and a half ago, The Marietta Times reported Tata filed a Federal Worker Adjustment and Retraining Notification Act (W.A.R.N.) notice with the state this summer. Ricardo Layun, vice president of U.S. operations for the company, told The Times the W.A.R.N. notice affected more than a hundred employees. The cuts were supposed to take place between Aug. 25 and Sept. 5. Layun said the company wound up laying off more than 40 employees. The facility employed more than 180 people when the notice was filed. Layun said about 120 people work there.
Company officials said the center will shutter Nov. 15. The remaining employees were notified last week.
We are grateful to each of our employees and this is in no way a reflection on them or their work. This difficult but necessary decision was made only after significant deliberation and we deeply regret the impact this will have on our employees, their families and the community. We are committed to treating our staff with dignity and are providing assistance to them, McDonalds statement read.