Capital One Is Cutting 750 Jobs in U.K. Unit
By VALERIE BAUERLEINApril 9, 2008; Page C3
Capital One Financial Corp. is cutting some 750 jobs in its United Kingdom division, a reflection of the McLean, Va., credit-card company's downscaled ambitions in Europe and part of a continuing cost-cutting review.
The positions to be cut are largely in call centers, account servicing and support roles, mostly in Nottingham, England. The job cuts represent close to 40% of the company's U.K. work force of 2,000. Most of the jobs will be outsourced to India and other countries, the company said.
The cuts are among 2,000 jobs companywide that Capital One said in June it would eliminate as part of a larger efficiency review.
Capital One said the cuts won't be accompanied by a drop in its dividend or the sale of preferred shares, moves used recently to increase capital at rivals, including Washington Mutual Inc. Rather, the company has boosted its dividend recently and said its capital base remains above internal targeted levels. The company is expected to announce first-quarter earnings on April 17.
Capital One made an aggressive push into Europe several years ago, building card businesses in the U.K., Spain, Italy and France.
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