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July 06, 2010

Economic Slowdown in 2009 Greatly Affected Teleperformance France
By Carolyn J Dawson
TMCnet Contributor

Teleperformance (News - Alert) France is a global trusted provider of outsourced CRM and contact center services. Recently, in front of the works council, it has presented the reorganizing project to strengthen competitiveness of the group.

The ranking of Teleperformance France has taken a beating due to a reduction in demand of the company's services in its vital markets and the loss of major sales contracts in 2009. The operating loss faced by the company in 2009 was over 36 million Euros which accounts for over 12 percent of its revenues.
In 2009, it started to practice the initial measures to control the expenses which consist of fixed cost reduction and voluntary redundancy plan. However, Teleperformance was not successful in making progress during the economic slow down, and moreover, the conditions have still worsened. Currently, Teleperformance France is facing a phase of structural production overcapacity.
In a release Jean-Herve Jenn who is the CEO of Teleperformance France underlines said that '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.'
Today, it has become mandatory for Teleperformance France to streamline its production facilities to bring back its profitability and safe guard the competitiveness of the group. The company has ideas to lessen its activities by limiting the number of contact centers from 22 to 14. The 14 contact centers include Belfort, Bordeaux, Guyancourt, Laval, Lyon, Le Mans, Montpellier, Niort, Orleans, Paris, Reims, Toulouse and Villeneuve d'Ascq. Besides that, it needs to lessen 15 percent of the employee headcount. The recent reorganizing project being submitted to the works council includes:
  • The closing of 4 centers which are idle such as Marseille (25), Pantin (149), Rennes (194) and Tours (51).
  • The joining of 2 centers into one- of 4 centers thereby lessening their headcount: in Le Mans (41), Lyon (169), Orleans (71) and Toulouse (61).
  • The downsizing of the Bordeaux center, dropping the headcount by 69.
The workforce representatives will review the submitted project within the framework of an information/consultation procedure. The company is planning to meet trade union organizations on July 8, 2010 to open negotiations on an agreement method.

Carolyn John is a Contributor to TMCnet. To read more of her articles, please columnist page.

Edited by Alice Straight


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