120 people could lose their jobs after Tiscali UK ditched an outsourcing deal with call centre operation Kingston Incontact (KI).
According to sources, staff at Hull-based KI - part of Kingston Communications PLC - were told yesterday that they would lose their jobs at the end of February.
It's understood that the whole of Tiscali's call centre operation is being moved to India.
A spokeswoman for Kingston denied that 120 jobs were under threat insiting instead that just 40 people were directly affected by the lost contract.
The company has begun a consultation process with those affected and insists it wants to keep redundancies "to a minimum".
In a statement Tiscali said: "Tiscali has taken a strategic decision to end its year long contract with Kingston Communications. Tiscali has expanded its in-house customer service centre in Milton Keynes and is developing additional departments in customer services." ®