Comcast will slash about 1,000 jobs in Northern California, including 600 in the Bay Area

Comcast will eliminate about 1,000 jobs in Northern California. (AP File Photo/Douglas C. Pizac, File) (DOUGLAS C. PIZAC)

Comcast will eliminate about 1,000 jobs in Northern California, including more than 300 in the East Bay and more than 300 in the South Bay, as it closes call centers in Livermore, Morgan Hill and Sacramento.

The telecommunications giant blamed the cuts on California's high costs.

"We have concluded that the cost of doing business makes operations in California expensive and very difficult," said company spokesman Andrew Johnson.

Comcast, the dominant provider of cable television services in the Bay Area, will transfer its call center work to existing similar operations in Portland, Seattle and Denver.

The job cuts, a fresh blow for a state that struggles with a jobless rate of 10.6 percent, will

take effect in stages. It's expected that some jobs will be eliminated on Nov. 30 and more in late December, Livermore city officials said.

"The cost of doing business in California is a well-known problem across the country and among business owners in the United States," said Scott Anderson, chief economist with San Francisco-based Bank of the West. "With the fiscal problems in California, these expenses will likely get higher. Tax rates may rise in California."

In a high-profile exit from California, Copart earlier this year relocated its headquarters to Dallas, abandoning its former head offices in Fairfield.

"Some businesses, such as high-tech companies, are interested in other factors that may outweigh the expenses

in California," Anderson said. "But for other businesses, it's hard to justify adding employees in California on a cost basis alone."

Comcast's pending exit dismayed Morgan Hill officials.

"We are sorry to see Comcast leave," said Edith Ramirez, Morgan Hill's city economic development director. "Comcast has been a good corporate citizen. They have been very involved with our schools and community groups."

The relocation of the call centers out of California is unfortunate but understandable, said Livermore Mayor John Marchand.

"The economic reality is you can put a call center anywhere in the world," Marchand said. "From the Midwest to the Middle East, they can be located anywhere."

The high cost of housing in the Golden State has helped undermine the state's business climate and ability to compete for jobs against other states, said Christopher Thornberg, principal economist with Beacon Economics.

"The cost of housing in California is obnoxious, especially in places like the Bay Area," Thornberg said. "We worry about taxes and business regulations. But I would argue that the problems really boil down to the crazy housing policies we have in this state."

Thornberg pointed to permit fees for new subdivisions that can add $70,000 or more to the cost of each new home. Neighbors are often skeptical or hostile about a new residential development. Political leaders can raise objections throughout the planning process, he said.

Despite their disappointment about the job cuts, Livermore officials noted that a big new retail center will go a long way to offset the job losses from the Comcast closure.

"There will be 2,000 new jobs created at the Livermore outlet malls," said Troy Brown, Livermore's assistant city manager. "We are excited about the employment opportunities that remain in Livermore."

Even after the job cuts, Comcast will retain 5,500 workers in Northern California, Johnson said. The company's Northern California regional headquarters will remain in Livermore.

Comcast officials said the shutdown of the call centers won't degrade the quality and level of customer service for Comcast subscribers.

The cable company also said that it is shifting to a new structure whereby call centers will specialize in particular customer needs, rather than geography. These include billing, sales, repair or retention.

"While this transition will result in our closing three call centers in California, the end result will be better customer service for our California customers," Johnson said.

Contact George Avalos at 925-977-8477. Follow him at Twitter.com/george_avalos.

Source: http://www.mercurynews.com/business/ci_21628027/comcast-will-slash-1-000-jobs-including-more-600-bay-area-call-centers?source=rss_emailed

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