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Do IT this week: Layering
Teleperformance says it needs new client to keep work force
By Betty Lin-Fisher
Beacon Journal business writer
Published on Saturday, Oct 31, 2009
The Akron call center of Teleperformance USA will shut down and more than 300 people will lose their jobs on Dec. 31 unless the company can find a new client.
The international company came calling in Akron three years ago, promising 600 full- and part-time call center and technical support jobs — or the equivalent of 400 full-time jobs.
SR. Teleperformance Group of Paris started taking calls for its Teleperformance USA operations at 150 E. Market St. in April 2006.
This summer, the company said it would cut 250 jobs, or half its staff, in August.
Mayor Don Plusquellic's office received a fax Thursday from Teleperformance USA saying it would ''conduct a mass reduction of force and site closure'' on Dec. 31.
The company said it would continue to ''pursue alternative clients for the Akron location with the objective of retaining the work force.''
''There is no guarantee that the company will be able to do this after the current client's business is reduced,'' the letter said.
There are 303 employees at the facility, according to the fax. The fax said that
the Akron call center's client was consolidating its operations in fewer locations.
Teleperformance USA spokesman Mark Pfeiffer confirmed the information on Friday.
Akron Deputy Mayor David Lieberth said Friday that the city knew there was a possibility the company would close the center.
''We had heard basically a month or six weeks ago that they had lost their principal client or that the principal client was terminating its call center business. We had some hint that this was imminent and then [the fax] came yesterday,'' Lieberth said.
24-hour operation in city
The company leases all three floors and 52,000 square feet at a former Ohio Bureau of Employment Services building for a 24-hour-a-day operation. The building was renovated and is owned by a group of investors who include Akron historic building renovator Tony Troppe and Jill Bacon Madden. Earlier this summer, Madden restored a building across town on South Main Street that houses her husband's PlusOne Communications, also a call-center firm. Bob Madden also was a vice president of national accounts and consultant for Teleperformance when the company came to Akron, but no longer works for Teleperformance.
Bacon Madden said she has not yet heard from Teleperformance about the closing, but hopes the company can shift some of its client work to Akron.
''We can all cross our fingers and hope that they're able to find another client to service that location to save the jobs,'' she said.
The company is in the middle of a five-year lease of the building, she said.
''Where there's an if, there's always some degree of hope. We've all got to hold onto that,'' she said.
In the August news release detailing the layoffs, Teleperformance said the center had provided customer-care services on behalf of a major cable communications service.
Client not identified
The company has said it could not identify the client for confidentiality reasons. Three years ago, when the company arrived in Akron, company officials said they would be taking customer-service calls and offer technical support for Cox Communications of Atlanta.
Bob Madden, now chief executive of PlusOne, said he thinks his former employer Teleperformance — a multibillion-dollar company — can find another client to save the Akron call center.
Madden said his PlusOne operation at 1115 S. Main St. in Akron is doing well and ahead of track in hiring employees.
''I don't anticipate a slowdown,'' he said.
He has about 300 full-time employees and will be hiring another 300 in the next three months. He said more information can be found at the company's Web site at http://www.plusone.us.com.
People may apply online or at the building office, he said.
If Teleperformance isn't able to get another client and closes the Akron call center, that shouldn't be taken as a sign that Akron isn't good for call centers, he said.
The outsourcing business is complex, but there are always new clients, he said. Madden said that for confidentiality reasons, he couldn't discuss whether any of his clients were competitors of or formerly with Teleperformance.
Betty Lin-Fisher can be reached at
330-996-3724 or blinfisher@
thebeaconjournal.com.
The Akron call center of Teleperformance USA will shut down and more than 300 people will lose their jobs on Dec. 31 unless the company can find a new client.
Get the full article here.
Comments
Click here to post your comments
Akron, Oh
Posted 03:13 AM, 10/31/2009
Good Job, Mayor!!!
Mayor, in 2006 used economic development funds to recruit a call center to 150 East Market with committment for company to stay and generate jobs. Now that facility is closing and another one, with same promises, is opening on Mian Street in Verve building, with same promises and economic development funds. What a shell game going on here today!!
Anti-Politically Correct & Anti-GOP, OH
Posted 06:47 AM, 10/31/2009
If this is a telemarketing firm, then good riddance!
Akron, Oh
Posted 07:30 AM, 10/31/2009
Teleperformance handles trouble shooting calls for Cox Communications. Television and Internet services. I applaud them for creating these jobs in the United States since other companies decided to go over seas with these jobs. They had a High turnover of jobs due to people coming and going because of their standards. Im not sure where Time Warner Cable does their customer service but it would be nice to know if they did it in the ole USA. Nothing like speaking to someone who can speak English fluently even when it's ebononics err now and then.
akron, oh
Posted 09:16 AM, 10/31/2009
Too bad for this company and it's employees. Hopefully they can find something to keep their doors open.
With that said, jvbzook's comment is probably closer to the truth. Most of the mayor's economic developement deals, never really pan out very well. And we have a deficit for the effort.
mayberry, oh
Posted 09:27 AM, 10/31/2009
the mayor was hailing the 1500 jobs he was bringing to akron through this company......oh yeah he also was hiring 21 new police officers,and the city was finacialy stable.....
akron, oh
Posted 09:32 AM, 10/31/2009
JVB - they lost thier principal client (RIF) how is that the mayors fault. Knucklehead
I feel for the folks who lost their job. Can't be easy
Akron, Oh
Posted 09:41 AM, 10/31/2009
Wow...let's blame the Mayor for trying and a business struggling in today's environment. Hopefully they find a new client for the sake of the employees and their families. Tough time to lose your job.
Posted 10:49 AM, 10/31/2009
The company leases all three floors and 52,000 square feet at a former Ohio Bureau of Employment Services building for a 24-hour-a-day operation. The building was renovated and is owned by a group of investors who include Akron historic building renovator Tony Troppe and Jill Bacon Madden. Earlier this summer, Madden restored a building across town on South Main Street that houses her husband's PlusOne Communications, also a call-center firm.
Something odd when the Mayor's major contributors for his anti recall campaign own the bldg their competition is in, and now are trying to scoop up their customers.
Hey AkronisDynamic - I noticed you had nothing to say or defend the Change Akron Now people for being caught lying during the recall election by the State Elections Board.
AKRON, OH
Posted 10:50 AM, 10/31/2009
htlong
The mayor was hailing the 1500 jobs and hiring 21 new police officers,and the city was finacialy stable.....REMEMBER all of this before the recall.Now an $1.410 Billion dollar debt.these companies utility bills will skyrocket.The Akron call center of Teleperformance USA will shut down on Dec. 31 .Jan 1st one of many rate increases.I wonder how many more companies will leave after being hit.Akron's $12 million dollar shortfall predicted in February 2006.Larry Parker of www.AkronWatch.org warned Akron 2006 that there would be a $12 million dollar budget shortfall by 2009.
Litigation over Akron's sewer discharges began in 1988 and should have ended in 1995 when Plusquellic agreed to resolve the problems and signed a Consent Decree in Federal Court. However, he failed to act, resulting in another lawsuit this year.Thats right don't blame the Mayor!!!
Akron, OH
Posted 10:53 AM, 10/31/2009
@JVBZook...
Don't overlook the fact that BOTH distributions of Akron taxpayer supplied "economic development" money benefited (acknowledged friends of Don Plusquellic) Jill Bacon Madden and Bob Madden.
Akron, OH
Posted 11:02 AM, 10/31/2009
==========
Madden said his PlusOne operation at 1115 S. Main St. in Akron is doing well and ahead of track in hiring employees.
He has about 300 full-time employees and will be hiring another 300 in the next three months.
==========
Gee...
Is it just coincidence that Teleperformance laid off 250 in August (a bit over a month after PlusOne started up) and now is terminating 330 more?
Is (Madden's promise of) 600 jobs a fair trade off for the loss of 580 existing jobs, not to mention the $1.5 MILLION that "Akron officials estimate the city has spent to improve sidewalks, lighting, parking and landscaping" at Madden's new PlusOne Communication building?
20 jobs for $1.5 million in costs to the taxpayers?
This sounds a lot like Mayor Don's version of the Obama 'Stimulus' program.
Posted 11:04 AM, 10/31/2009
Maybe they can see if Time-Warner Cable would like some English speaking reps; I know I would. Sorry for the job loss.
Akron, OH
Posted 11:18 AM, 10/31/2009
Let's not overlook the fact that the Madden owned "Verve Building" currently appraises for over $700,000.00
They were sold that property by the City of Akron for $2.00
Also, remember this little gem from an interview of Bob Madden by AkronNewsNow in the days just prior to the recall election
===============
Madden says the name of the company (PlusOne Communications LLC) is partially derived from the mayor's name because of his commitment to the project.
===============
Dade City, Fl
Posted 11:22 AM, 10/31/2009
Welcome to Akron. Own your own business in pop bottle collecting, aluminum can seekers for recycling. Earn as much as you want. Akron has it all, with the exception of real jobs.
AKRON, OH
Posted 11:36 AM, 10/31/2009
Overtaxed Voter posted:"Verve Building" currently appraises for over $700,000.00
They were sold that property by the City of Akron for $2.00
What you thought only Akron U got the $2.00 special from Don?
Akron, OH
Posted 12:13 PM, 10/31/2009
@htlong, where did you get the number of 1500 promised jobs? Even the article says the call center promised to deliver 600.
Akron, OH
Posted 12:14 PM, 10/31/2009
@spd3333, it was not telemarketing. Call centers take the calls initiated by a consumer.
Akron, OH
Posted 12:15 PM, 10/31/2009
@stephend6, why do you continue to lie about the debt numbers?
AKRON, OH
Posted 12:53 PM, 10/31/2009
Gain Some More Reality:Akron debt cap urged:Ex-councilman Tarle begins petition drive to amend city charter
By Stephanie Warsmith
Beacon Journal staff writer
Published on Wednesday, Oct 14, 2009
Finance Director Diane Miller-Dawson immediately pointed to problems with the proposal, starting with how Akron's total debt — currently about $790 million.Akron also has about $120 million in public utility debt, $790 million and $120 million is $910 million.Ex-sewer official says rate hikes to be painful
By Bob Downing
Beacon Journal staff writerPOSTED: 07:34 p.m. EDT, Oct 28, 2009.The price tag for Akron's sewer improvements will exceed $500 million and probably will lead to the tripling of sewer rates for Akron residents and the suburbs that rely on the city's sewer system, Crandell said.Akron Service Director Rick Merolla confirmed the cost of the sewer work probably will exceed $500 million.SO $910 MILLION PLUS at the mim $500 million = $1.410 billion.What MRDD DID NOT TEACH YOU MATH.
Akron, OH
Posted 01:30 PM, 10/31/2009
@stephend6, all the numbers in that article were a break down of the same $790 million, which was clearly labeled "total debt". The article was breaking down the largest two pieces of the $790 million: $200 million for schools and $120 million for utilities.
The "also" you are hanging your entire argument on is means the $120 was in addition to the $200, both of which make up the same $790 million.
You are misreading the article.
Akron, OH
Posted 01:59 PM, 10/31/2009
@GainSome...
Obviously htlong picked up the PlusOne 'promised' (or more likely 'fantasy' numbers), not the Teleperformance number.
With that said, it is quite ironic and troubling to find the following two items listed back-to-back in Mayor Don's 2005 'State of the City' propaganda.
==========================
JBM (Jill Bacon Madden) Holdings – The City sold (for $2.00) the Former Bank One at 1115 S. Main Street to JBM Holdings. JBM has invested approximately $2 million in renovations with expectations of creating more than 300 new jobs.
Teleperformance – In-bound customer service center at 150 E. Market increased employment to 700 with payroll of more than $14 million in 2007.
==========================
Well, rather than happening in 2005, it took JBM 4 years (and $1.5 million in taxpayer improvements to the area) to reach that "300 jobs" number.
Rather than a combined 1,000 jobs as promoted back in 2005, now there will (possibly) be 600 if Madden adds 300 more in the next 3 months.
Thanks Mayor Don!
Akron, OH
Posted 02:03 PM, 10/31/2009
Sorry for any confusion caused by the fact the City has the pdf document titled "State of City '05".
It actually deals with 2007 figures and was presented during the 'State of the City' address on February 7, 2008.
"http://www.ci.akron.oh.us/news_releases/2008/State%20of%20City.pdf
Akron, OH
Posted 02:15 PM, 10/31/2009
While we do some 'investigative reporting' around here...
From the City of Akron's
PROGRESS REPORT
YEAREND
2006
CAPITAL INVESTMENT & COMMUNITY DEVELOPMENT PROGRAM
Published
April 25, 2007
Compiled by
Department of Planning & Urban Development
Department of Finance
Bureau of Engineering
Page 136 of 145
====================
Business Incentive Program [VF0602]
TOTAL
Budget - $0
Committed - $ 1,162,800
(Could things like "$0 budget", "$1.16 mil Committed" be what causes $12 million budget deficits???)
Business assistance based on job creation.
Ordinance authorizing agreements with Teleperformance USA passed 5/8/06.
Ordinance authorizing loan agreement with Foundation Industries passed 9/18/06.
Contracts awarded to:
Teleperformance USA @ $150,000
Comdoc @ $290,000
Homesite Group Inc. @ $50,000 for three year employment training
Aircraft Braking Systems Corp. @ $400,000
Sharon Companies @ $250,000
Louis, Perry & Associates for feasibility study of RCA Rubber @ $22,800.
====================
http://ci.akron.oh.us/Planning/CIP/Reports/PR2006.pdf
Akron, OH
Posted 02:23 PM, 10/31/2009
Last but not least, from page 11 of "Akron City Magazine" May-August 2008 edition
======================
akron Works | Where the Jobs Are
teleperformance
Doing Business By Phone In Akron
by Mark Williamson
Here’s the answer to a question that a lot of people have been asking: What’s going on inside that old building on East Market Street?
Amidst the busy-ness of downtown Akron, it may be surprising that there could be 700 people working in a round-the-clock operation in relative anonymity…and the workplace is above ground!
Since April 2006, a worldwide corporation employing 83,000 in 281 offices has had a significant presence in the heart of Akron. The
firm, Teleperformance, has assembled a local work force that rivals some of the area’s larger, better-known employers.
Every month, Teleperformance processes roughly 300,000 inbound telephone calls in the East Market building that once housed the Ohio Bureau of Employment Services. The calls come from people all over the nation asking for technical support for their cable television, e-mail, or Internet.
The majority of callers are customers of a large American communications firm that contracts with Teleperformance to manage these inquiries. Its client base includes international telecommunications and technology companies such as Dell, Cox, Verizon and
Sprint Nextel.
The corporate client served by Teleperformance’s Akron office has rated the quality of the calls handled here as “significantly positive”
for their customers, and that says a lot for the training and quality of workers here.
Norton, Oh
Posted 02:26 PM, 10/31/2009
ObamaCare won’t just raise taxes on the rich, and impose tax penalties on people without approved health-insurance plans. It will also dramatically change tax laws so that “taxpayers will be fined for honest mistakes,” explains prominent New York tax lawyer James M. Peaslee. That’s true even if the mistake resulted from a confusing tax rule, and the taxpayer “tried in good faith to comply with the law.”
(Keep in mind that the health-care bill backed by Obama is over 1,000 pages long, and some of its most prominent supporters have ridiculed the notion that they themselves should read the bill before voting on it).
Reference: DC Examiner (Wash DC publication) dated 8-25-09... But Stephen says it aint so... It is there for the reading.
Akron, OH
Posted 02:26 PM, 10/31/2009
Where the Jobs Are ~continued~
===================
John Ruch, general manager for Teleperformance in Akron utilized $150,000 in training grant funds supplied by the City of Akron to show his employees the ropes.
“The response was tremendous,” said Ruch. “In fact, in the two years we’ve been operating, 11,000 people have applied for work here. And our clients have been impressed with the quality of work.”
In 2007, Teleperformance contributed $15 - $20 million in payroll to the City’s economy with an array of jobs paying from $9 - $15 per hour.
Akron’s Deputy Mayor for Economic Development Bob Bowman says the City welcomes the wide range of hourly job opportunities provided by Teleperformance. “The wages are higher than what many service sector jobs pay,” Bowman said. “It is important to realize, too, that these jobs fill a
need in our City because of the many people qualified to do them who are currently without work.”
Globally, Teleperformance processes more than 1 billion customer contacts every year.
http://www.ci.akron.oh.us/mayor/magazine/2008-05-08.pdf
Norton, Oh
Posted 02:30 PM, 10/31/2009
sorry last post was placed under wrong article.
Orrville, Oh
Posted 05:35 PM, 10/31/2009
Reality demands; Calling Center; market cost in the price of their service; of Every workers living (including pension and healthcare); enabling parents to love, nurse, nurture, discipline, protect, and provide for every child (job) they conceive; and fund schools, infrastructure, national security, government services, and etc.; with money derived from wages or independent business profit!
Posted 05:41 PM, 10/31/2009
I'm very sorry for those that might lose jobs, and hope you find something even better.
Danville, CA
Posted 07:49 PM, 10/31/2009
What reality demands, Loren...is that people of the Rust Belt get rid of people like you so they can rebuild the region's economy absent the constant drumbeat of class hatred and class struggle and childish labor union antics over the last hundred or so years.
Akron, Oh
Posted 08:21 PM, 10/31/2009
Overtaxed Voter
I am impressed with your research. What do you suggest...it is logical to profess it when it was what it was..the deal was sealed and delivered...but now it is falling apart. What would you have done different. What do you offer? So they hired people...the economy collapsed...and now they must lay off people. Kindly...what is your point? Please explain. I just do not understand what you offer. I play my role in bringing about change....it is not simply pointing out error but offering something. You may...I do not know.
“The greatest challenge to any thinker is stating the problem in a way that will allow a solution”
Bertrand Russell
clinton, oh
Posted 08:27 PM, 10/31/2009
Its time to stop the finger pointing.
This Mayor isn't going to win the most popular Mayor in the U.S. ,though he could be a candidate for the now meaningless Nobel Peace Prize.
However:
Not everything that happens in this economic climate is the Mayors fault.
The problem is Politicians take too much
credit for positive economic news and too little for the negative news.
But name calling,I told you so,wheres the recall now chorus is getting us no where and is getting old.
This Mayor is not the worst thing that has ever happened to a city,and he is knowledgeable,if also
arrogant and self serving.
That sums up every politician that holds office.
Everybody better call a truce and start looking
at the U.S.,State and local economies and start plugging the holes and work together.
And we better stop fooling ourselves about cash for clunkers,or Green energy industries or State casinos.
Better get back to basics now.
Akron, Oh
Posted 09:50 PM, 10/31/2009
@ FRITZA WOW....AKRON BEACON JOURNAL...THIS IS HUGE...PLEASE DIG IN FAST. FOLKS MONEY MIGHT BE IN TROUBLE.
Akron, OH
Posted 10:41 PM, 10/31/2009
@akronisdynamic
The root of the problem is when the Mayor's friends (in this case, the Maddens) get not one, but two sweetheart, taxpayer funded deals for the exact same kind of duplicated business.
The taxpayer's assisted Jill Bacon Madden with the old Ohio Bureau of Employment Services building, then the taxpayers poured more money into training in Teleperformance, where her husband was a high level executive.
Two years later the Mayor is at it again, selling a city owned (and now $700,000.00 valued) property to the Maddens for $2.00 and pouring another $1.5 million of taxpayer dollars into improvements for a business to compete with Teleperformance... to be named PlusOne Communications because of the Mayor's support.
Even Ray Charles and Stevie Wonder can see the problems with this.
clinton, oh
Posted 12:03 AM, 11/01/2009
Overtaxed voter.
Kudos!
Subtraction by Addition
Akron, Oh
Posted 04:34 AM, 11/01/2009
Akron going downhill -------------- FAST!!!
First, Akron brings jobs, with promise of permanancy, Then ---------- GOODBUY ----
Areas are redeveloped, like FIRSTENERGY (White Pond), Then LAYOFFS are announced.
Plus stimulus jobs are promised, like Frank Ave improved, but WHEN!!!
When are, real good, long-lasting jobs going to come to Akron.
Anti-Politically Correct & Anti-GOP, OH
Posted 07:24 AM, 11/01/2009
OH, ok, thanks for the clarification on that. I thought it was a telemarketing outfit. Then, knowing that it was not, then this sucks!
AKRON, OH
Posted 08:38 AM, 11/01/2009
Overtaxed Voter: The problem is the buddy system in Akron.If you are my friend and need a building,$2.00 and we will pay to fix it up.If you are my friend and need a job,I will create a 6 figure job for you.(Mark,Billy).Don has as is the problem in Akron.Oh if you oppose me i will fight and spread lies to get rid of you.But sometimes it backfires on you Mayor. Ask Mike Williams,Still council at large.
AKRON, OH
Posted 08:46 AM, 11/01/2009
jvbzook post:When are, real good, long-lasting jobs going to come to Akron.
They are not.The utility bill (sewer)will be to high.The cost will exceed $500 million.Now add that to the already $790 million debt.
Akron, OH
Posted 11:50 AM, 11/01/2009
This one falls squarely on the federal government.
Obviously the DO NOT CALL list is a success!
Akron, Oh
Posted 07:11 PM, 11/01/2009
AKRON JR wrote:
This one falls squarely on the federal government.
Obviously the DO NOT CALL list is a success!
----------------------------------------------------
It appears that the "Blame Bush" crowd still can't give it a rest. It's been a year now and that argument is cowardly and lame...and it has been from the start.
Akron, Oh
Posted 09:06 PM, 11/01/2009
stephend6
Clearly state who is to blame and why. Please do that without reposting posts. I must say some of what you say is confusing.
AKRON, OH
Posted 09:22 PM, 11/01/2009
akronisdynamic Go back into you fantasy world with Don.And of course the real world is confusing to you.Have a cookie and go away.
AKRON, OH
Posted 09:38 PM, 11/01/2009
Zapdog The patriot act was never read either.Most if not all bills are written by staff or others,And never read.ObamaCare haven' made it to any floor yet,Amendments , debate, changes to the bills, than a vote in both houses, than a conference committee,Than a conference iron out their differences, Than an vote,Than back to both houses for an final vote.And than to Obama to sign.But you skipped all these steps and know what will be in the final bill.Read it for yourself.It is around 1900 pages long.
Richfield, OH
Posted 12:18 AM, 11/02/2009
Another business dying at the hands of Obama.
Richfield, OH
Posted 08:46 AM, 11/02/2009
Just wait, the company will keep a security guy at the building and Obama will count it as a job saved.
akron, oh
Posted 11:11 AM, 11/02/2009
Wait a minute!!!! At least the laid off employees will have the pleasure of viewing the city of Akron's holiday decorations I am sure that will help them feel better!!!!
Akron, Oh
Posted 06:25 PM, 11/02/2009
stephend6
What kind of cookie?
stephend6 said
Zapdog The patriot act was never read either.Most if not all bills are written by staff or others,And never read.ObamaCare haven' made it to any floor yet,Amendments , debate, changes to the bills, than a vote in both houses, than a conference committee,Than a conference iron out their differences, Than an vote,Than back to both houses for an final vote.And than to Obama to sign.But you skipped all these steps and know what will be in the final bill.Read it for yourself.It is around 1900 pages long.
Spirit of Reagan said
Another business dying at the hands of Obama.
and the winner is......
Spirit of Reagan
