Telus International, once Folsom’s ‘call center of the future,’ lays off 267 people

It was once billed as the call center of the future. But now it’s very future is in doubt.

Telus International Inc. has given 267 employees layoff notices at its Folsom call center, where workers provided technical help for customers of Google, TikTok and other Silicon Valley companies.

The center, which featured a Ford Mustang shaped pool table and retro diner themed conference rooms, is now mostly empty of employees.

The idea was to create a fun working environment that would result in atypically strong customer service that would be especially attractive to high-tech companies willing to pay more than the typical call center services in The Philippines or India or in rural parts of the U.S.

Telus International also owns some of those centers overseas, operating in more than 25 countries.

So what went wrong? The company wouldn’t discuss specifics but winning new business from tech companies and then losing it has been the standard course for the Folsom call center since operations started in late 2015.

The center could accommodate around 650 call center workers on two floors, but the work force never exceeded 400 or so at its maximum.

In reviews on various web sites that rate companies, some former workers blame employee unhappiness for the center not operating as promised. The employees say they encountered poor managers and low pay and work schedules that were not flexible as promised.

In 2019, the call center lost many of the employees who were working for technology company NEST, makers of various home technology products.. While around 238 em.employees. were terminated, a company spokeswoman said NEST work continued to be conducted at the Folsom facility by a core group.

New contracts with tech companies ensued. But the end came quickly over the last few months with the center losing its last two major contracts.

Notices filed by Telus International with the state Employment Development Department show the the latest layoffs have come in two batches. In the latest notice last month, Telus said 180 employees would be terminated beginning Sept. 6, because of “the end of a client relationship and expiration of a contract.”

“This mass layoff is expected to be permanent,” the company said.

The previous layoffs were announced on May 1. Telus International informed the state EDD that it would be terminating 87 employees on June 30 because of the ending of another contractual relationship with an employer.

The companies that did not renew contracts with Telus International were Google and TikTok, according to workers affiliated with the call center. Representatives of the two companies did not respond to emails from The Sacramento Bee.

On Tuesday afternoon, only four cars dotted the several hundred space parking lot by the call center at 255 Parkshore Drive off Folsom Blvd. Doors to the two-story call center building were locked and security guards could be seen roaming the lobby.

Several months ago, the parking lot was full, and several hundred people filled seats inside the call center, according to people connected to the center who could not give their names, because they were not authorized to speak.

Telus International spokeswoman Leslie Clavin said the center is not closed. She said Telus International moved to a remote work model at the beginning of the COVID-19 pandemic in March 2020.

She said the remote work policy applied to the majority of U.S. employees, including those in Folsom. She said some Folsom employees work on-site in a hybrid model.

What’s unclear is how many employees remain in the Folsom facility or are working remotely in California. Claven refused to offer specific numbers.

In an email, addressing the latest work reduction, Clavin said that the client employing the laid-off Folsom employees, is reducing its overall global workforce.

“Unfortunately, that decision extends to employees providing customer support through third-party vendors, including Telus International.”

Clavin said Telus International is looking to find work for the employees with other teams, including remote work.

The Telus International website shows no open positions in California.

What is clear is that Telus International has been focusing on new job creation at a new location in North Charleston, South Carolina.

The company in August 2021 promised to create 1,200 new jobs in South Carolina by 2022 investing more than $3 million in opening a new call center and creating new jobs.

It also operates a U.S. call center in Las Vegas.

In announcing the opening of the South Carolina facility last August, Telus International promoted working inside the facility, not the remote work philosophy that Claven said the company adheres to.

“Telus International’s 80,000-square-foot North Charleston delivery center features spacious workspaces filled with natural light, as well as a long list of amenities for employees, including ergonomic workstations, a 24/7 gym, a coffee shop, and an open-air BBQ area with a fire pit,” said a corporate statement.

Telus International Chief Operating Officer Chuck Koskovich did say that Telus supports remote work as needed, “due to the on-going challenges posed by the COVID-19 pandemic.”

The call center in Folsom was originally connected to another firm, Dublin-based Voxpro. It was sold to Telus International in 2017. Telus International is owned by Telus, which is based in British Columbia and is a Canadian phone and Internet provider.

Back in late 2015, Voxpro officials emphasized they chose the Sacramento area for its first U.S. call center because it’s close to Silicon Valley.

“A lot of (clients) are weary of taking plane journeys to remote parts of the U.S.,” Dan Kiely, Voxpro’s founder, co-owner and chief executive, said during a visit to the Folsom facility.

Kiely also made a promise that Voxpro officials would be committed to Folsom, keeping the center in operations for years to come

This story was originally published August 3, 2022 at 12:55 PM.