Capital One Cutting Jobs

Capital One Financial Corp is known for their credit cards, auto loans, and mortgages, however, some people may not know that their auto loan and mortgage portfolio are suffering as more and more borrowers show an inability to pay. They have had more and more auto loan and mortgage losses lately, and therefore have had to do a mass reduction in its workforce.

Capital One has announced that they will be cutting 6% of their employees, or about 2,000 people. The company says that they cannot afford to keep all of their employees because of the auto loans and mortgages that are not being paid.

They say that by improving their “operating efficiency” they will be able to increase their earnings over the year. The number of foreclosures that the company has faced over the last few months has set a record high for the company just in the first quarter alone. They are losing millions as customers are missing auto loan and mortgage payments.

The company has lost $12.6 million over the past quarter as the number of charge-offs for the company for auto loans, credit cards, mortgages, etc. have increased dramatically. The company believes that with the number of cuts that they are making with their personnel, and cutting back on back office operations as well as management, they will be able to turn their earnings forecast around for the remainder of the year.

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