It seems as if things aren’t as pleasant in the world of credit card companies as it may appear from the outside – at least, not to the employees of Capital One Financial Corp. The company recently announced that it will be cutting 280 jobs from within its credit card division. Approximately 260 of these jobs will be those employed in Richmond, Virginia while another 20 will be those from McLean, Virginia, which is where the company’s headquarters are located.
These cuts, which represent approximately 5.8% of the company’s credit card unit, are expected to take effect in just three months. The specific departments within the unit that are being targeted for reduction include customer operations, marketing and analysis, and the technology divisions.
The credit card unit of Capital One currently employs approximately 4,800 people, with the total number of people employed by the company being around 31,800. Competing against the juggernauts within the industry, such as Bank of America, Citigroup, JPMorgan Chase & Co. and American Express, however, has apparently appeared to be too much for the company.
On the other hand, Capital One does not appear to be in financial trouble. In fact, the company has spent $18.2 billion in the last year and a half purchasing Hibernia Crop in New Orleans and North Fork Bankcorp Inc. from Melville in New York. These purchases further reinforce the company’s decision to focus more on banking than on the credit card industry.
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