Capital One Scraps 1,100 Tech Positions – Source

(Reuters) – Consumer lending firm Capital One Financial Corp has cut 1,100 positions in its technology segment, a person familiar with the matter told Reuters on Thursday, a move that comes as its digital transformation matures.

The company plans to eliminate its “Agile” job family and integrate it into existing engineering and product manager roles, it said in a statement. The affected employees have been invited to apply for other roles in the bank.

Shares of the credit card giant fell nearly 4% to $97.98 in afternoon trading.

“The Agile role in our Tech organization was critical to our earlier transformation phases but as our organization matured, the natural next step is to integrate agile delivery processes directly into our core engineering practices,” the statement said.

The company had over 55,000 employees in the third quarter ended September 2022, according to company filings. Bloomberg News was the first to report about the job cuts.

Over the years, companies such as Capital One invested in technology heavily as competition intensified between card giants and fintechs.

“Their contributions have been critical to maturing our software delivery model and our overall tech transformation,” Capital One said.

The job cuts also come at a time when technology companies, crypto exchanges and financial firms are reducing their workforce and slowing hiring as global economic growth slows due to higher interest rates, red-hot inflation and an energy crisis in Europe.

Capital One will report fourth-quarter earnings next week. Analysts expect the credit card giant to report a profit of $3.85 a share from $5.41 a year earlier.

(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Devika Syamnath)