Capital One cuts 750 Nottingham jobs

by Gill Montia

Story link: Capital One cuts 750 Nottingham jobs

US-based credit card provider, Capital One, is reducing its UK workforce by 40%.

The company plans to make 750 staff redundant from its European headquarters, which are based in Nottingham, where it has been a major private sector employer since 1998.

Job losses will fall mainly among call centre, account servicing and support staff.

The move forms part of a cost-based review that will see staff numbers cut by 2,000 worldwide, to around 27,000.

In addition, some of the remaining jobs will be relocated to low-cost countries, such as India.

Capital One has been experiencing a rise in bad debt and has also had its profit margins eroded by new restrictions on the penalty charges that can be applied to UK customers.

The credit card market has been strongly competitive in recent years and in future, Capital One will be making its UK business central to its European operations.

In related news, Discover, the US credit card provider, sold its UK Goldfish business to Barclays last month and this week went on to acquire Diners Club from Citigroup.