750 people are facing the axe as Capital One decides to cut jobs in its UK head office. The office which currently has 1,750 members of staff is located in Nottingham. It has been the US companies headquarters since opening in 1998. It has been announced that the cuts will mostly affect call centre, account servicing and support staff. Most of these positions will be outsourced to India and other countries. Nottingham City council has said that although the cuts are bad news Capital One will still be a big player in Nottingham and that this at least, is a good thing.
In a Business Week article an excerpt from an email which Srini Gopalan, UK company head, sent to employees was quoted: "I am confident that the business model we are moving towards will allow us greater opportunity to bring our costs in line with our competitors so that we are able to compete more effectively and efficiently in the U.K. credit card market." The credit card firm has promised to help those who have been made redundant to find new positions.
Following the other job cuts which the company has planned, the credit card giant expects to have just 27,000 employees worldwide. The purposes cited for cutting so many jobs is one of economic competitiveness. However, these cuts come at a time when the economy is in crisis and large investment banks are also making job cuts. Mortgages are being pulled off the market and redundancy statistics are high.
The American parent company of the credit card firm has reportedly set aside huge amounts of money to cover bad assets in the swell of the credit crisis. Nevertheless, in an article on the This Is Nottingham website a member of staff from the operations department said: "This is not about the credit crunch, this is about continuing to deliver great products and services and keeping us cost competitive."
In the same article it was revealed that: “When the company, reported its earnings for the final quarter of 2007, they showed a substantial increase in money set aside for worldwide losses on loans - up to 1.2bn dollars from 595m dollars the previous quarter.” Regardless of whether the cuts are to improve the companies competitiveness in the market or to help the firm deal with bad assets, staff at the firm who are facing redundancy will have a 3 month consultation process which Capital One hopes will help them to move on successfully.
In a BBC article Srini Gopalan, head of Capital One Bank (Europe) plc, said: "Whilst this was a difficult decision for the UK management team, it is recognised that this is part of the ongoing effort to ensure the business framework is in a place that supports an overall competitive strategy in the UK market."
Nottingham City’s council leader Jon Collins also said: "Nottingham City Council, with our partners, will work with Capital One to provide additional support that will help affected employees find their way into appropriate, alternative employment as soon as possible."
Capital One is not the first financial firm this year to cut jobs and as credit problems go unresolved and house prices plummet chances are it will not be the last.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Depleted savings no more money to pay alimony?
By: Out of Money | 25-07-2008
I lost my corporate job this past October and haven't been able to secure new employmnet locally to stay close to my children. I continued to pay child support and alimony for 10 months and can no-longer keep up with the alimony and child support. I have depleted all my savings and can no-longer aford to pay my ex-wife the money. What are my obligations towards the child support and alimony of I can't aford to pay it?
I have an item that was in collections and was ...
By: arco24 | 25-07-2008
I have an item that was in collections and was paid by my insurance a year after they started collecting. Now, I have that item on my credit report and it isn't being removed.The item is listed as being paid if full after being in collections. I have contacted the creditor and asked for proof that it was my burden to pay, and they said they won't do that. What can I do to remove this from my report?
How do you find the expected return
By: Tammy | 25-07-2008
how do you find the expected return
How to get there to see the ceremony ?
By: aloha | 25-07-2008
What kind of opening ? What is the address ?
Debt consolidation companies, debt consolidation company, credit card debt, credit relief, debt relief, credit cards
By: Johansen8 | 25-07-2008
Can Credit Card Debt Relief Be Attained?
so far, Im not convinced....
as stated by Ms. Mathis in can credit card debt relief be attained?
Can u see the difference among the gold ?
By: strikegold | 25-07-2008
where to get the cheapest world of warcraft gold ? what about www.agamegold.com or www.wow4w.com or www.wow7s.com what is the difference among the three?if u have dealings with this any of them ,do tell me here.i want to know more about these site.
Q&A Powered by:
Latest Credit Articles
Learn About Credit Card Debt Negotiation - Learn the Secrets
By: Bryan Burbank | 25/07/2008
When negotiating with the credit card companies about your debt it is always important to understand that you are the one in control and do not be intimidated by the credit card company. They like it when you make your minimum monthly payment and do not want you to stop that so they will be willing to negotiate your debt so to make it easier to make those payments.
Repairing Damaged Credit Scores: How to Raise Your Score 120 Points
By: Thomas Boston | 25/07/2008
Repairing a credit score can seem like a difficult and daunting task to undertake. This article helps separate the truth from the myths and help guide a consumer to repairing their credit score fast.
Are Banks Raising Credit Card Rates to Shore Up Their Finances?
By: Reno Charlton | 24/07/2008
Most people are well aware that the UK's banks area really suffering as a result of the global credit crunch, and many have had to try and find alternative ways to increase funding as a result of increased difficulties in getting money on the wholesale money markets. Some have suggested that one of the ways in which banks have done this is through increasing some fees and charges on credit cards.
The Better Your Credit Score, the Less Money You Pay in Interest
By: John Collins | 24/07/2008
Credit scores are reviewed for so many different purposes, in some instances without our knowledge, it is a good idea to review both the credit score and the credit history periodically.
Get Student Credit Cards for Extra College Expenses
By: Devora Witts | 23/07/2008
There have been lately offers for students that feature specially designed credit card packaged for college students. These credit cards offer a combination of financing, flexibility, security and control so student can feel comfortable about managing their finances and at the same time obtaining the benefits that credit cards provide.
100% Equity Financing for Home Improvements
By: Devora Witts | 23/07/2008
It is possible to obtain financing up to 100% of your property’s market value with your mortgage balance and a home equity loan for home improvements combined. With this money you can start that long postponed home improvement project and turn your home into your dreamed home within a short period of time.
Credit Repair: How to Handle a Collector
By: Jim Kemish | 23/07/2008
If you are contacted by a collector you should know your rights. A nationally recognized consumer advocate and credit repair expert offers some useful advice about dealing with collectors, and coming out ahead.
Pick a Credit Card, Any Credit Card
By: Andy Adams | 23/07/2008
Getting a credit card in the midst of a credit crunch may seem possible but there are still many different cards with differnet offers so which one should you pick?
More from Sarah Othman
Mortgage Lenders and First-time Buyers Stall While the Market Worsens
By: Sarah Othman | 04/07/2008 | Mortgage
The mortgage market has hit something of a standstill and it is having knock on effects. Patrick Collinson and Rupert Jones said it best when writing for the Guardian: “Britain's mortgage market appears to be in meltdown, with first-time buyers going on strike and lenders joining them.”
Moneysupermarket.com Expresses Concern as Mortgages Slump
By: Sarah Othman | 04/07/2008 | Mortgage
Concerns about inactivity in the mortgage market have hit the balance sheets of Moneysupermaket.com. First time buyers are reluctant to spend their hard earned money and banks are reluctant to lend home loans to them, which is the reason the mortgage markets are being badly hurt this month. Mortgage rates are on the increase and more and more low deposit deals are being taken off the market.
Life Insurance Firm Finds 46 Year Olds Most Materially Wealthy
By: Sarah Othman | 04/07/2008 | Insurance
A new report by the well-known Life Insurance firm More Than has revealed that 46 year olds are at the peak of their financial and material wealth. The report said that by the time people are aged 46 they have more valuable items in their homes than ever before. The Lifesworth report determines living standards by the value of the items in a person’s home and the report suggests that 46 year olds have more fun and are happier and more financially secure than any other age.
Experts Advise Special Care When Choosing Secured Loans
By: Sarah Othman | 04/07/2008 | Loans
Experts are warning that thanks to rising interest rates, tighter controls on awarding credit, and a huge drop in the number of secured loans on the market it is now more important than ever that those looking for a loan find the right one for them and do not pay too much for it.
2 Times as Many People Take Out Costly Loans
By: Sarah Othman | 04/07/2008 | Loans
Recently published figures have revealed that there are two times as many people taking out expensive loans as there were 9 months ago. Moneysupermarket.com released the new statistics and has said that the number of loans made by people to tide them over until payday has increased radically. An additional 130% of people took out payday loans this May as compared to the numbers which were taken out in August 2007.
Visa Card Issued With 365% Interest Rate
By: Sarah Othman | 21/06/2008 | Credit
News broke yesterday that a visa credit card with an exceptionally high lending rate has been made available to customers by a leading financial firm. The credit card is being offered to customers who have a poor credit rating and has a whopping 365% interest rate.
Bank of England Set to Rescue Loan Markets
By: Sarah Othman | 21/06/2008 | Loans
Radical new plans have been drawn up to aid banks and building societies which are suffering the most during the current credit crisis. Chancellor of the Exchequer, Alastair Darling has set in motion plans for The Bank of England to absorb billions of mortgage-backed assets, which the banks and building societies can then pay back over a 3 month period. The proposed action will be co-ordinated in conjunction with similar efforts which are being made by financial authorities in the US.
Ultra Sound Technology to Prove Invisible Whiplash Injuries
By: Sarah Othman | 14/05/2008 | Personal Injury
It has been four years since the University of Nottingham announced research which could potentially prove some types of whiplash injury were physical. Whiplash, also known as neck sprain, is a controversial injury which is often suffered by drivers or passengers in motor vehicle accidents and is generally a neck injury.
Finance 
