By Calvin Azuri
The business restructuring project will be presented by Teleperformance (News
) France to the works council. Teleperformance France is a subsidiary of the Teleperformance Group, global provider of outsourced CRM and contact center services. This project will reinforce the group's competitiveness.
A drop in demand in its key markets has weakened Teleperformance France. The company also lost major sales contracts in 2009. An operating loss of EUR36 million was incurred by the company in 2009. This represented more than 12 percent of its revenues.
The company has not been able to recover with the first control measures implemented in 2009 during the economic crisis. These measures included fixed cost reduction and voluntary redundancy plan. A situation of structural production overcapacity is being faced by Teleperformance France.
Teleperformance France needs to streamline its production facilities in order to restore its profitability and protect the group's competitiveness. The company is planning to reduce its activities from 22 to 14 contact centers. Belfort, Bordeaux, Guyancourt, Laval, Lyon, Le Mans, Montpellier, Niort, Orleans, Paris, Reims, Toulouse and 2 at Villeneuve d'Ascq are the 14 contact centers.
A reduction of 15 percent of the employee headcount is required to return to break even. 4 centers at Marseille, Pantin, Rennes and Tours will be closed down with 25, 149, 194 and 51 job redundancies respectively. This is included in the restructuring project which will be submitted to the works council. The operation will also merge 2 centers into one at Le Mans, Lyon, Orleans and Toulouse. The headcount here will be reduced by 41, 169, 71 and 61 respectively. The Bordeaux center will be downsized with the headcount reduced by 69.
The workforce representatives will review the submitted project within the framework of an information/consultation procedure. A meeting with trade union organizations has been proposed by the company to open negotiations on an agreement method or 'Accord de methode'.
In a release, Jean-Herve Jenn, CEO Teleperformance France said 'The company is aware of the social impact of this reorganization and we wish to implement a job protection plan aimed at ensuring the repositioning, both internally and externally, of each impacted employee according to the ambitions and experience of each individual.'
Calvin Azuri is a contributing editor for TMCnet. To read more of Calvin's articles, please visit his columnist page.
Edited by Alice Straight