Capital One to lay off 58 employees

One day after issuing a lackluster quarterly earnings statement, Capital One Financial Corp. told 58 employees, including 42 at the company's West Creek campus in Goochland County, that their jobs would be cut.

The rest of the cuts will be at headquarters in McLean, company spokeswoman Julie Rakes said.

The layoffs hit the U.S. Card division, which is responsible for the marketing, acquisition and servicing of credit card accounts.

No one was let go yesterday, Rakes said. Affected employees will have 60 days from May 4 to find other work at Capital One or leave the company, she said. Full-time employees will keep their status with full benefits for the 60-day period and be eligible for severance packages.

Employees entering what she called redeployment will receive comprehensive career planning support, she said.

The U.S. Card business is making organizational and foundational changes "to position the business for continued success on the other side of the economic cycle," she said.

"The changes support the company's continued focus on managing costs and operating efficiently."

The card business, known for its "What's in Your Wallet?" advertising campaign, reported profit of $2.4 million in the first quarter, a 99.5 percent decrease, year over year.

Capital One, one of the largest employers in the Richmond area, reported Tuesday evening a first-quarter loss of $176.1 million, citing rising credit losses and the need to set aside more money for bad loans.

The company reported a profit in the year-ago period.

Yesterday's job reductions mark the second this year. Last month, Capital One cut 35 finance and accounting jobs in the area and reduced its dividend paid to shareholders by 87 percent.

All full-time employees who do not pursue careers at Capital One are eligible to receive outplacement services, in addition to severance. The company employed the equivalent of 6,703 full-time workers in the Richmond area as of Jan. 1, up from 6,474 full-time equivalent employees as of Jan. 2, 2008.

Contact Carol Hazard at (804) 775-8023 or .