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Call Center Lay Off

Posted on July 5, 2020 | No Comments on Call Center Lay Off

At the height of the 2008 global financial recession, the Philippines experienced mass lay offs in some multinational companies especially in the IT manufacturing sectors. The call center industry also experienced some lay offs as companies streamlined their operations to realign themselves with the stagnation and decrease of economic activity especially in the US.

The mass lay offs were necessary for companies to cut their expenses and stay afloat. It was the logical thing to do because if companies continue to operate beyond their capacities, they might end insolvent and bankrupt in the long run. Because the US is affected by the crisis, the call center industry in the Philippines directly felt the impact of the recession apparently because the US market constitute the majority of the market that call center companies in the Philippines served. However, the lay offs were relatively minimal compared to the layoffs that occurred in the US especially in their manufacturing sector. The effect was minimal partly because customer service remains very much relevant despite the fall of the manufacturing sector.

After the 2008 financial crisis, the call center industry in the Philippines is again plagued with gossips circulating about mass lay offs this time to be initiated by the American government, especially after the US president called upon US firms to stop outsourcing. Apparently, the 2008 financial crisis is still taking its toll to the American people as reflected by the US high rate of unemployment.

However, despite this appeal of the US president to stop outsourcing, it would definitely be difficult for American call center companies to heed the president’s call their reliance to outsourcing already forms part of the companies operations. Stopping outsourcing would destabilize and threaten the nature of their operations, which would be more economically risky.

Moreover, call center agents in the Philippines should stay calm the US governments American Jobs Act which comprised the government’s plan to get Americans back to work does not really include putting an end to outsourcing. Instead it focus on tax cuts, the promotion of entrepreneurship and spending of government on infrastructure to provide jobs to Americans.

Originally posted 2013-09-30 20:37:44.

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