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Capital One (COF) to Cut Jobs as Need for Digital Tools Grow

Given the increasing importance for automatic digital support over human customer service, Capital One Financial Corporation COF is laying off nearly 400 employees at its Rolling Meadows office in Chicago. Per Chicago Tribune, majority of the job cuts will take place within the company’s service department, which supports the credit card call center.

Capital One’s online banking business displays strength. The company’s digital tools have started gaining importance and are being preferred over human customer support. These digital services help customers solve their problems online. It helps in reducing the time taken for a particular problem to be solved and hence customers prefer online support over human support.

Sie Soheili, a spokesman for Capital One said, "Even while our business has continued to grow, call volumes continue to decrease as customers increasingly self-service through a mix of our digital tools and contact center calls."

All the workers who are losing their jobs were given at least 16-weeks prior notice. However, they are being given a chance to apply for other positions available within the company.

The employees have been made eligible for a severance package. They can take interview coaching, obtain retraining assistance and resume writing instruction.

Capital One currently employs nearly 1,900 people in the Chicago area. Following the job cuts, the work, which was initially assigned for the Rolling Meadows office, will be shifted to other locations where the company does business from.

However, nearly 600 employees who work within the digital and technical departments will stay at the current Rolling Meadows office.

Although Capital One’s strength in credit card and online banking business position it well for long-term growth, we bring to you some other finance stocks that you may want to consider.

Farmers Capital Bank Corp. FFKT witnessed an upward earnings estimate revision of 5.1% for the current year over the last 30 days. Also, its share price is up more than 23% in the past 12 months.

Bank of America Corp. BAC has witnessed an upward earnings estimate revision of 1.7% for the current year in the last 30 days. Moreover, its shares have gained nearly 59% in a year’s time.

Comerica Inc. CMA has witnessed an upward earnings estimate revision of 3.7% for the current year over the last 30 days and its shares have gained nearly 52% in a year.

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