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Capital One (NYSE:COF) Eliminates 1,100 Tech Jobs
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Capital One (NYSE:COF) Eliminates 1,100 Tech Jobs

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Capital One has reduced its tech workforce. The financial services company will announce Q4 earnings on January 24.

Financial services company Capital One (NYSE:COF) eliminated 1,100 tech roles, Bloomberg reported. The positions eliminated were from the company’s Agile workforce, which helped transform its products and software delivery model. 

COF is now a part of the growing list of companies that have reduced staff in 2023. Leading tech giants, including Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Salesforce (NYSE:CRM), slashed thousands of jobs. According to layoffs.fyi, the company tracking tech layoffs, 133 tech companies have laid off 38,815 employees so far in 2023. 

As for the COF employees, the Bloomberg report highlighted that they could apply for other roles at Capital One. Meanwhile, the ones who do not find a role in the bank would be eligible for a severance package, including at least 16 weeks of compensation. 

Capital One is scheduled to announce its fourth-quarter financial results on January 24. Analysts expect COF to report earnings of $3.88 per share in Q4. This compares unfavorably to the prior-year quarter’s EPS of $5.41. A higher provision for credit losses amid a weak economic backdrop is likely to negatively impact COF’s Q4 earnings. 

Is COF a Buy or Sell?

Capital One has received four Buy, six Hold, and three Sell recommendations, translating into a Hold consensus rating. Moreover, Capital One stock closed at $97.91, down 3.92% on January 19, implying an upside potential of 12.65% based on its average price target of $110.3.  

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