Capital One Finance Corp. will eliminate approximately 1,400 positions from three of its call centers. Around 1,100 jobs will be cut from its Tampa, FL-based facility, with another 160 workers dropped from its Dallas location and 120 downsized from its Richmond, VA center.
The work volume will be shifted to U.S. based companies, according to a statement from the McLean, VA-based credit card issuer. Capital One did not provide a timetable for when the jobs would be eliminated.
The cuts were announced on the same day Capital One reported net income of $407.4 million for second quarter 2004, up from $286.2 million during second quarter 2003. The companyÕs earnings rose from $682.3 million a year ago to $711 million during the quarter just ended.
The company recorded a $56 million charge during the second quarter for employee termination benefits and for facility consolidations, and anticipates taking between $60 to $100 million in charges during the remainder of 2004.
In a statement, Capital One attributed the layoffs to its Òongoing drive to achieve cost efficiencies and maintain the companyÕs momentum for continued success.Ó
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