Dallas, TX, USA, Nov 7, 2017 -- Banking and financial services company Capital One announced that it will lay off about 950 people in Plano, as it exits the mortgage and home equity business and closes a call center.
The company said that it's been too challenging for the company to stay competitive and turn a profit in the mortgage business. It will close the home loan business and lay off about 750 people in Plano who are part of it. About 155 additional employees will be laid off in St. Cloud, Minn., and Melville, NY.
Capital One will continue to service its existing and pending home loans, but it will not write new loans.
In an email to employees on Tuesday, Capital One's president of financial services, Sanjiv Yajnik, said the mortgage and home equity "businesses are in a structurally disadvantaged position, given the challenging rate environment and marketplace."
Capital One's retail banking division is also closing a Plano call center, which employs about 200 people. Company officials say they've seen a decline in call volume as more customers have turned to the mobile app, bank branches or other channels for their banking needs. The call center will answer calls until early summer 2018.
Employees who lose their jobs can apply for other Capital One openings, she said. They will receive severance and job placement assistance. Capital One's Plano office will host an on-site career development center with interview practice, coaching and resume writing assistance. It will also host information sessions about internal openings and a job fair with employers from the home loan industry.
Posted by Veronica Silva Cusi, news correspondent
Date Posted: Wednesday, November 8, 2017
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