HUNTINGTON, W.Va. (AP) — Sitel plans to lay off 123 workers at its a customer service call center in Huntington next month after losing a major contract.

The company announced the plans in a letter to Huntington Mayor Kim Wolfe. The layoffs are set to take effect Aug. 2.

A separate letter to employees attributed the layoffs to the end of a contract with XM Satellite Radio. When the company landed that contract in February 2007, the Huntington office added about 150 employees.

Deputy Mayor Tom Bell says the company is looking for new business opportunities. Bell says he’s optimistic the laid off workers will be recalled.