U.S. based Capital One is reducing its Canadian footprint, as the company confirmed it will end its relationship with Costco Canada and Hudson’s Bay in 2021. Instead of focusing on card partnership relationships, the company is shifting focus on its own branded credit card business. The conclusion of the Costco deal will take place by late 2021, while they hope to end the Hudson’s Bay partnership by mid-2021.
“While we value the strong relationships that we developed through our Partnerships business in Canada, there is a significant growth opportunity in the branded card space that we know well. We are grateful for the successful partnership over the years with both companies and are proud of the strong card business and customer relationships that our associates have built,” reads a statement from a Capital One spokesperson.
The company spokesperson added that customers should feel no difference in their card operation, and will be supported in the transition. The company also cited the elimination of the partnership contracts as the reason for closing the Canadian call-centre offices, but says that most will continue to have employment within Capital One.
“With our partnership separation and the subsequent decrease in service needs, we have made the difficult decision to close our Montreal and Toronto call centre sites. Importantly, there are no immediate changes for our associates. Everyone who was notified that their jobs are impacted by this announcement will continue in their current role through at least May 2021, with the majority working through September 2021,” they wrote.
Layoffs to come
Despite the inclination to save jobs, the statement from Capital One noted that there will be layoffs, but did not confirm how many employees will be affected.
“We will provide these associates with our full support, to include extensive resources and transition assistance, severance, access to outplacement services, and assistance in career planning, resume writing, interview skills, coaching, etc. And regardless of tenure, the vast majority of associates will receive a minimum of 15 weeks of separation pay,” reads the statement.