Sykes shrinks global operations

TAMPA -- Sykes Enterprises Inc. (symbol: SYKE) will soon divest its operations in the Netherlands, Ireland, South Africa, and Spain.

The Tampa-based customer management outsourcing firm outlined dramatic changes to its global business operations in a filing with the Securities & Exchange Commission made public this week. Its Spanish operation will be sold, while facilities in the Netherlands, Ireland, and South Africa will be shut down outright.

Through the first nine months of the year, Sykes says it generated about $922 million in total revenue, of which $18.9 million came from its combined operations in the Netherlands, Ireland, and South Africa. But that business segment was not profitable, instead creating a $2 million operating loss through Sept. 30. Sykes says it will transfer some business from its Ireland operation to other facilities, but will otherwise shut down a business segment that would have generated more than $23 million in revenues over all of 2011 if kept open.