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Stream International (Kalispell) reduces work force by 245

Stream International on Tuesday announced it was laying off 245 people at its Kalispell tech-support center.

The company cited poor economic conditions in the global computer and manufacturing markets.

By Dave Reese
The Daily Inter Lake

Stream provides technical support for electronics companies around the world. The company employs about 700 people in Kalispell at its Gateway West Mall location.

Employees affected by the layoffs have been given 60 days’ notice, with pay and benefits, according to Matt Roszell, spokesman for Solectron, the parent company of Stream International.

"It’s important to note that (the layoffs) are not a reflection of how the people have performed … it’s a reflection of the economic downturn," Roszell said. "Our customers have been hit very hard."

Solectron’s revenue was down 10 percent between the first and second quarters this year, Roszell said. "Faced with these numbers, we’re left with no other choice than to make the difficult decision and preserve the company’s health."

At the Stream call center, employees take phone calls and e-mails from customers around the world on everything from computers to computer printers. Big companies outsource their tech support to Stream.

Last December the company added 200 employees when it won a major contract. It was unknown whether Tuesday’s layoffs were related to that contract.

Solectron purchased Stream in September 2001.

Solectron’s stock was trading at $2.97 a share at the close of markets Tuesday, down from a 12-month high of $8.50 in May 2002.

Last month Solectron reported second-quarter sales of $2.8 billion, compared with $3 billion in the same quarter last year. In the quarter ending Feb. 28, the company had a net loss of $111 million, compared with a net loss of $71 million in the previous quarter and a net loss of $126 million in the second quarter last year.

Stream opened in Kalispell in spring 2000, after the company received some $4 million in incentives from government, business and economic development organizations to locate the call center here.

On the Net: http://www.stream.com

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