Change in Startek Directors

On March 28, 2012, Shelia Fisher was terminated from her position as Senior Vice President, Sales and Marketing of StarTek, Inc..

Posted on April 12, 2012 at 3:38 pm by Admin · Permalink · Leave a comment
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Startek Greeley Moving Time Warner Cable

Startek’s Greeley, Colorado location announced they are moving the Time Warner Cable contract to their call centers in Ortigas and Costa Rica. Startek will be laying off 30 people by April 30th.

It’s only a matter of time before Startek’s Greeley Call Center shuts down just like all of the other north American Startek call centers.

Startek Closes Jonesboro Call Center and Lay Off 200 More

Startek to closes it’s Jonesboro call center and lay off 200 more leaving almost nothing left of their North American footprint. Though upper management is muttering about “saving the site” with another client, do not count on it. They have no real intention of keeping any of these sites open.

For more you read: http://www.bizjournals.com/memphis/news/2012/02/14/startek-closing-jonesboro-facility.html

Startek to Layoff 250 or More Employees in Decatur

Startek has given the remaining employees at their Decatur call center notice that they will likely be losing their jobs within two months. Startek is feeding these employees the same story as all of the other centers they have closed.

“We are looking for new clients but if none are found we will have to close the site.”

Don’t fool yourself, Startek has no intention of keeping any of its centers in North America.

News Article: http://www.pjstar.com/free/x1676723004/StarTek-could-lay-off-250-at-Decatur-office

StarTek cuts 380 Jobs in Illinois

Startek to cut 380 jobs in as they look to sell their operation to another customer or close it down.

Inside sources report that there really is no serious “buyer for Startek operations” and those at this site should expect it to close soon.

For a little more information check out this news report: http://www.bizjournals.com/denver/news/2012/02/14/startek-to-cut-380-jobs-in-illinois.html

Startek 3rd Quarter Financial Report

StarTek, Inc. announced its financial results for the fourth quarter and full year ended December 31, 2011. The Company reported fourth quarter 2011 revenue of $51.1 million and annual revenue of $219.5 million. Net loss was $0.49 per share in the fourth quarter of 2011 and $1.75 per share for the year ended December 31, 2011.

Fourth Quarter 2011 Financial Results

Fourth quarter 2011 revenue decreased 1.1% compared to the third quarter of 2011. Revenue was down slightly from third quarter due to lower volumes in North America and the closure of the Company’s Kingston, Ontario facility in September 2011. The North American decline was partially offset by Offshore revenue growth, which increased by $3.4 million, or 20.5%, compared to the third quarter of 2011 as the Company continued to ramp new business in these locations.

 

Gross margin grew to 10.8% in the fourth quarter of 2011 from 7.3% in the third quarter of 2011. The improvement was due to continued growth in Offshore gross margin, which improved from 10.6% in the third quarter to 16.9% in the fourth quarter driven by better utilization as the Company added nearly 900 full-time equivalent agents in this segment compared to the third quarter of 2011. In the fourth quarter of 2011, Offshore gross profit represented 61% of the Company’s total gross profit compared to 47% in the third quarter and 11% in the fourth quarter of 2010.

SG&A expense for the quarter totaled $11.0 million, compared to $10.0 million in the third quarter of 2011. The increase was due mostly to $0.7 million of severance costs in the fourth quarter primarily for the Company’s former Chief Financial Officer.

The Company reported a fourth quarter 2011 operating loss before impairment and restructuring charges of $5.4 million and adjusted EBITDA of negative $1.2 million, compared to a third quarter 2011 operating loss before impairment and restructuring of $6.5 million and adjusted EBITDA of negative $2.3 million. The Company had a net loss of $7.5 million, or $0.49 per share, during the fourth quarter of 2011. The fourth quarter 2011 net loss compares to a net loss of $6.8 million, or $0.45 per share, in the third quarter of 2011.

 

For the full story: http://www.marketwatch.com/story/startek-inc-reports-fourth-quarter-and-full-year-2011-results-2012-02-23

Posted on March 4, 2012 at 12:48 pm by Admin · Permalink · Leave a comment
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Startek to Close Call Centers

On February 7, 2012, StarTek, Inc. (the “Company”) received written customer notification of an intent to reduce its business in the Company’s Decatur, Illinois and Jonesboro, Arkansas facilities. The reduction is expected to occur over the next two months and is expected to result in an aggregate reduction of approximately 380 full-time equivalent (“FTE”) agent positions. As a result of this notice, one contract will be terminated and one other contract will see reductions. Although the termination and reductions of the aforementioned contracts and each of these facilities in and of themselves do not represent a material reduction in the Company’s revenues, we expect the cumulative effect of these reductions to result in a material revenue decline beginning in the first quarter of 2012 and extending into the early part of the second quarter of 2012 as these operations wind down. We are actively selling the capacity that we have in those facilities to other clients. However, if we are not successful in doing so, we may decide to close one or both of them. In that event, there could be impairment and restructuring charges which would depend on which facilities are closed and when.

http://biz.yahoo.com/e/120213/srt8-k.html

Startek Employees May Be Eligible for TAA

Are Startek Employees eligible for Trade Adjustment Assistance at Enid? They may very well be. Other Startek employees at other locations may qualify for similar benefits across North America?

Those at Enid may not be the only ones that are eligible for this type of aid since the thousands of people that Startek has laid off over the last few years have all lost their jobs to them moving off shore.

If you think you might qualify talk to your local government to find out.

http://www.ok.gov/oesc_web/Services/Workforce_Services/Assistance_Programs/Trade_Adjustment_Assistance.html

What Is Trade Adjustment Assistance?

Trade Adjustment Assistance (TAA) is a federal program which provides assistance to workers who lose their jobs or whose hours of work and wages are reduced as a result of increased imports. Under this program you may qualify to receive allowances for training, job search and relocation. Additionally, a Trade Readjustment Allowance (TRA) may be payable if you qualify.

Startek is, and has, had campaigns of non-information or disinformation. DO NOT ask Startek if you qualify or not. Contact an independent governmental source.

Mass Hiring for Startek Greeley of 130?

Since this announcement from Startek, the Greeley call center has yet to hire even a quarter of what they had promised for a business that is yet to show. As usual when Startek has announcements like these made, a majority of the so called “new jobs” are given to transfers within with a small percentage actually going to people outside Startek.

 

Mass Hiring a Sham

 

Startek’s Layoff Numbers staggering in Virginia

Over the course of StarTek’s partnership with the City of Virginia, they have employed and released almost 1200 people. This article summarizes this rocky up and down relationship to the very end including under performing and yearly kickbacks to Startek.

 

StarTek lured to Virginia