Thread regarding Capital One layoffs

Everyone tracking these “smaller” and quieter layoffs?

Let’s assume for a second the posts for the past ~90 days here and on other forums are all accurate. Without concrete confirmation on any of these (outside of the ADL job family elimination) people are reporting redeployments in the Business Risk Office, in Navigator, Auto, Recruiting, Retail Bank, Card Customer channels, and myriad offshore shifts in numerous areas; Is this trickle effect an attempt to avoid triggering some sort of WARN act notice more broadly? What are the combined layoffs amounting to for the enterprise year to date?

With stock price health being a known motivator for C-suite and upper echelon leadership decisions, influencing macro policies, would not a big-bang announcement of a reduction in force of X% of the company not result in the typical share price bump “reward” likely being sought after, let alone the cost savings and “prudent move” analysis summaries offered by The Street? Why the incremental slow-bleed approach without press releases to ensure a nervous investor base that C1 was doing the “prudent” move (as a trend FOLLOWER) and trimming pandemic-era hires, or right sizing for the economic uncertainty we are in the middle of?

If reducing costs via attrition is really a driving force here, why have we not seen a similar page in the playbooks of others (Amazon, Google, Salesforce, Facebook, Twitter, etc.) implemented where arbitrary reduction numbers are publicly announced first, with the actual axe falling shortly after a public announcement (while associates who are “on the fence” in terms of their self-perception of job security end up self-selecting out of the rat race, thus helping to contribute to the reduction numbers)??? With the annual performance cycle complete and bonuses deposited in the last pay cycle, I’m surprised more overt cost cutting measures haven’t been publicly announced for all the wrong reasons.

Seems to me, lacking a direct question during the next shareholder or quarterly earnings call, or Rich Fairbanks internal roadshow, C1 will continue to quietly and incrementally reduce or offshore headcount without leveraging the big-bang benefit/admiration they could achieve by being more forthcoming on what RIF (reduction in force) strategies are actually being implemented.

Good people (associates) and their customers in card and bank are all in a state of omnipresent turmoil and uncertainty as a result of the lack of visibility to the actions being taken by the enterprise. With unemployment scraping upon record lows, rumors of a significant change to what C1 considers a “hybrid” work environment, and investor appeasement being a known prime driver of strategic decisions (that have historically negative consequences for those doing the work), what is the motivation of ANY employee to stay wed to C1? Maybe this has been the master plan all along… but I doubt it.

Does C1 really think everyone is living in an awareness vacuum? Deposits are down, it’s more expensive than ever to borrow money for a car, house, get a business loan, utilize merchant services. Fraud and the tech to counter it are at a premium. CD and savings interest rates are sky high just to entice monetary influx. Defaults on loans and card debt are forecasted to be in line with a-typical recession-level trends as soon as the current quarter, yet no one wants to say we are in a recession. Default reserves are at record highs to offset the forecasted losses and are being lauded as “appropriately conservative” by analysts and pundits.

I am a Dir+ level associate at C1 who was approached last week to validate my lowest performers (the powers that be KNOW what the rating were for my team and don’t need me to validate…just look in Workday - why the games??). Then I was asked identify the associates within my team who were “necessary and vital” for continuity of our functions and deliverables by my VP. Last straw for me was being asked to complete a resource risk profile under the auspices of a “workforce management” activity where aggregate head count was arbitrarily pitted against adjacent partner and complimentary teams on a soulless spreadsheet, lacking the ability to convey inherent flaws in the way the comparisons were structured. Clearly there are “real” RIFs being planned and I just wish C1 would call a spade a ♠️. Let people know without a veil in place what’s being planned, where it will impact. Allow associates the grace of being afforded a competitive advantage by jumping early if they choose with the enterprise’s intentions made transparent, while the labor market is still favorable. Allow the C-suite and investors their coveted gains in share price by going public with the macro intentions; You may be able to sleep better at night knowing you “actually” lived up to the stated company values.

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| 2611 views | | 7 replies (last April 1, 2023) | Reply
Post ID: @OP+1lzS8uj6

7 replies (most recent on top)

100 to all this. I’ve survived for almost 25 years and have weathered this cycle many times. I’m done now. Avoiding reporting under the warn act has always been a strategy which made the ADL elimination a total surprise to me

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Post ID: @mgam+1lzS8uj6

A good old fashioned bank run would put a fix to all these issues.

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Post ID: @4otg+1lzS8uj6

Big tech decided to pull the bandage off all at once. It hurts more at first but then is (hopefully) over.

I was with Capital One during a smaller downturn in 2011 and worked close with recruiting. The first step they did (which was probably done this summer this time) was put an unofficial hiring freeze on. They kept the job board full of requisitions, but only moved forward on mission-critical ones. This way, investors would not detect any potential issues.

Capital One plays dirty, all the while following trends from larger companies. It is a sign of poor and weak leadership.

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Post ID: @1kwj+1lzS8uj6

@OP+1lzS8uj6

Thanks for clarifying that you as a people leader work with other people leaders and HR to do distribution rankings, stack ranking, and forced rankings to fire "non performing" staff. It is subjective and introduces bias. These firings are not covered by the WARN Act because these associates are fired for "performance" related issues based in their evaluations. It is used to cut costs and supplement larger layoffs. We know these firings happen twice a year and not treated as layoffs but terminations with cause. That is how dirty capital one and other companies who use stack rankings most recently Meta do to their employees.

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Post ID: @kvx+1lzS8uj6

The agile layoffs were the ones that made headlines, but definitely not the only layoffs. There’s been hundreds of more layoffs that have been swept under the carpet over the past couple of weeks.

The quieter the better for leadership. That’s why sites like this are needed to show the real picture

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Post ID: @nli+1lzS8uj6

Your biggest mistake is assuming leadership wants to draw attention to what’s happening.

While several others in the same sector (Goldman Sachs, Wells Fargo, etc) have publicly announced layoffs and enjoyed the resulting fallout benefits you mention, overall the banking industry is still net positive in terms of hires when factoring in pre-pandemic levels to layoff numbers. Heck, there is still a hiring spree afoot for some:

https://www.reuters.com/business/finance/big-us-banks-show-brave-face-jobs-goldman-sachs-cuts-staff-2023-01-13/

Which may be your entire point. If C1 has a layoff strategy being quietly implemented, why not just say that publicly so the talented and dedicated associates can decide if it’s time to go hang their hat with employers eager to welcome them.

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Post ID: @rfs+1lzS8uj6

To all of this - Just yes, and amen!

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Post ID: @hws+1lzS8uj6

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