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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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August 2007 Archives
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