AdvantaStaff, Capital One plan 327 layoffs

DATABASE: Virginia Layoffs

Two area employers are cutting 327 jobs in the Richmond area.

Capital One Financial Corp., one of the largest employers here, is eliminating 66 jobs in its U.S. credit-card customer operations at its offices in Goochland County.

The cuts mark the third round of layoffs this year for the McLean-based credit-card and financial-services company, for a total of 143 local job reductions this year.

Chester-based staffing-services company AdvantaStaff Inc. plans to cut 261 jobs next month because of the loss of a customer contract.

In a filing with the state, the company said it will lay off employees at three of its plants on Jefferson Davis Highway.

"A primary customer recently advised AdvantaStaff it will significantly decrease its demand as of June 5," AdvantaStaff President Christine G. Chandler said in a statement. "AdvantaStaff must in turn reduce its work force to match the lowered demand for services."

Chandler declined to answer other questions.

A letter filed by Chandler with the Governor's Office for Workforce Development said the customer gave "sudden and unexpected" notice of cuts in production requiring AdvantaStaff to make the reductions. The letter was filed May 5 and made public yesterday.

Most of the layoffs affect production staff and quality control. But forklift operators, inventory clerks and administrative positions also will be cut, the company said in the filing.

Capital One employees were told yesterday that the cuts were necessary because the company was making organizational changes to operate more efficiently, company spokeswoman Julie Rakes said.

All but one of the 66 positions are full time at the company's West Creek campus in Goochland.

The cuts are at all levels in customer operations, said Rakes, declining to be more specific. About 1,900 employees are in the group, so the cuts represent nearly 3.5 percent of the total.

"We realize that the impacts from this decision will be felt well beyond our organization, as associates and their families deal with the news," Rakes said.

Employees will make the transition out of their roles during the next several weeks, she said.

Full-time employees are eligible for severance packages, including outplacement services. They will enter a 60-day period beginning June 4 to leave the company or find other work there.

"Associates entering redeployment will receive comprehensive career-planning support," she said.

Capital One employed the full-time equivalent of 6,703 workers in the Richmond area as of Jan. 1, an increase of 229 full-time equivalent employees from the same time in 2008.

"A lot of time when companies are laying off in one area, they are hiring in other areas," said William F. Mezger, chief economist at the Virginia Employment Commission.

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

Contact Emily Dooley at (804) 649-6016 or .

Job reductions