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June 21, 2007
DAYTONA BEACH - First Data Corp. will close its local call center by spring 2008, gradually laying off 400 employees, the company announced Thursday.
First Data, based in the Denver area, is transferring work to other call centers in the United States and the Dominican Republic. Layoffs will begin no earlier than October.
"This decision was not made lightly and does not reflect the excellent service the Daytona Beach team provides," said Jim Green, director of internal communications.
The local call center at the Speedplex Office Park along West International Speedway Boulevard provides customer service for consumers and merchants, mainly related to credit card, money order and check processing.
First Data also laid off 70 local workers earlier this year during a companywide restructuring.
A private equity firm, Kohlberg Kravis Roberts & Co., announced in April it plans to acquire First Data, a public company, for $27 billion and take it private. Shareholders will meet in New York on July 31 to vote on the acquisition.
Green, the First Data spokesman, denied Thursday that closing the Daytona Beach call center is a sign First Data was being broken up and sold off.
The Daytona Beach closing "does not impact the company overall," Green said.
First Data has had an occupational license in Volusia County since July 2, 1998. The company has operated from an 85,000-square-foot office complex that will eventually be sold, Green said.
Rick Michael, director of Volusia County Department of Economic Development, said the good news is other call centers are hiring, so First Data employees will be in demand.
In an e-mail, Green noted employees will be offered jobs at other First Data facilities or help in finding other jobs locally.
If they do not secure another position with First Data, they will be eligible to receive severance, he stated in the e-mail: "Our employees remain a top priority and we anticipate a seamless transition for our clients."
Attempts to talk to several First Data employees Thursday were unsuccessful.
First Data was among a group of companies that opened call centers in Volusia County in the late 1990s. The company's starting pay at the time was only $6.25 an hour, so it didn't qualify for any economic incentives, according to Michael.
-- Staff Writer Audrey Parente contributed to this report.
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