Convergys cutting 500 workers in Winnipeg

Call centre operator Convergys will lay off 500 people in Winnipeg, the U.S.-based company said Tuesday.

A decrease in call volumes causedby the flagging economy was cited as the reason for the reduction, which will take place in stages.

Convergysis believed to have lost two major contracts, a former employee who didn't want to be identified told CBC News.

The Cincinnati-headquartered company's Winnipeg workforce will be reduced to 100 employees after the layoffs are complete. Workers leaving the Convergys office said they were not formally given details aboutthe layoffs by managementon Tuesday, but expected more information later this week.

A spokesperson said thelayoffs are likely to be carried out through early 2010.