Capitol One reports record profits and layoffs

How can you announce surging profits and layoffs on the same day.  This is beyond hubris on the part of management.  This is why I think we are in a corporate profits bubble right now that may burst at any point.  They are undermining the very foundation of our economy to get the last few inches of "profitability" out of their company.  At some point though, the foundation will give out and all will come tumbling down.  This is maddness.

Story Here

Capital One to lay off 1,400 workers

Creid-card issuer reports 42 percent surge in profits
The Associated Press

Updated: 9:50 a.m. ET July 22, 2004MCLEAN, Va. - Capital One Financial Corp. said Wednesday it plans to lay off 1,400 call center workers and outsource their jobs to save money.

The announcement came on the same day the company reported a 42 percent surge in second-quarter earnings,

•  amazing

  i am cancelling my captial one card NOW!
  this is truly incredible insensitivity

  by smartone on Wed Jul 28, 2004 at 01:59:10 PM PDT

•  Oh shit.

  One of my best friends works for Capital One at McLean.

  I need to call her and make sure she's ok.

  by DynomiteUVA on Wed Jul 28, 2004 at 02:01:16 PM PDT

•  Hey Capital One employee! What's in YOUR wallet?

  Nothing!

  by Kagro X on Wed Jul 28, 2004 at 02:01:31 PM PDT

•  How Does This Happen?

  The corporate hubris involved in announcing record profits and stating that employees are being outsourced "to save money" shows what motivates these CEOs.  

  Many states imposed no real limits on what the credit card companies could charge in interest to attract the jobs credit card companies promised.  The high interest rates remain, but the jobs do not.

  by eafredel on Wed Jul 28, 2004 at 02:03:01 PM PDT

  •  Easy

    There's a new call center opening in our area right now. With the Cdn dollar at .75 cents against the US$ it's more profitable for Capital One to bunch their call centers in with thousands of others under one roof. This company is employing hundreds of workers in the area and that's only in one small part of Canada.  You don't want to know what's going on in India, the Philippines, China, etc.  

    Get out your little plastic credit card and run it through the shredder. Call your bank and ask them for a loan (if you have to) to pay off the card balance. It will be far cheaper in the end.  Then put a call into Captial One and tell them what you're doing and why. Follow up with a written statement. Fight back!

    by banjon on Wed Jul 28, 2004 at 02:36:44 PM PDT

•  Fuck Capitol One..

  Capitol One is one hell of a piece of shit company. I found out the hard way, when I was going through a divorce a few years ago, just what kind of company they really are.

  by dc on Wed Jul 28, 2004 at 02:11:50 PM PDT

•  Most of those profits come from fees

  They're making more than half the profit from late fees. They've juggled the rules so they always win.

  The banks are doing the same, if anyone ends up with income problems the banks and credit card companies put them into a death spiral with overdraft fees and late charges of every kind.

  by fly on Wed Jul 28, 2004 at 02:19:57 PM PDT

  •  I've had to make them give back

    about $200 in unwarranted fees over just the last few months.  They run through exorbitant service charges ahead of other charges to make your account run over then they charge a $29 overage fee.  They also say they can't accept any online payments made after 3pm eastern of the due date.  I recently had to explain to them that the receipt I printed showing I made the payment on the day it was due would have more validity in court than their arbitary rules.  But I think most of the customer service people aren't aware of all the tricks that company pulls.  And the customer service calls that go to India are often pure torture.  I like Indians but I often have trouble understanding them and getting them to understand that what they have been told by their employer is not always true.

    by mikepridmore on Wed Jul 28, 2004 at 02:41:06 PM PDT

•  ceo's too in general

  From about a year ago, a study linking CEO pay raises to layoffs.  Meanwhile Emperor C-plus Augustus diddles by giving tax cuts to big corporations and the wealthiest Americans while the working man burns.

  by mikepridmore on Wed Jul 28, 2004 at 02:33:01 PM PDT