Narayan AmmachchiTaskUS will lay off nearly 200 employees in San Antonio, ostensibly in response to cost-cutting measures imposed by certain onshore clients struggling with inflation and interest rate hikes.
The Texas-based company is now considering expanding operations overseas in order to avoid the negative effects of a potential recession in the United States.
TaskUs reported a 26% increase in revenue for the fiscal year 2022, but the company’s profit margins kept shrinking.
“As companies increasingly shift their focus to efficiency, our clients are turning to us to help improve outcomes and drive down costs at scale”, stated CEO Bryce Maddock in a press release this week, confirming pressures being felt by the company from the buy-side.
TaskUs will lay of 186 employees by March 20, according to Texas Workforce Commission, which has been notified by the company.
Comments made in social media point to the majority of those being laid off being sales executives, implying that call center agents will be unaffected by the ongoing reorganization.
TaskUs employs approximately 500 people at its San Antonio facility, which opened in late 2017 after gaining new clients in the area.
Some of TaskUs clients, including Plus One Robotics and USAA, have already reduced their workforce in response to the drop in their earnings, according to local media reports.
TaskUs, on the other hand, is hoping to make more money “offshore than onshore,” with Maddock expecting overseas growth to position the company “well for healthy growth in the back half of 2023 and beyond”.
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