Capital One to Cut 215 Jobs at Former Discover Offices

Capital One plans to lay off 215 employees at the former Discover offices, according to a report by the Washington Business Journal. The layoffs are reportedly due to a Worker Adjustment and Retraining Notification with the Illinois Department of Commerce and Economic Opportunity.

Capital One Financial Corporation has announced plans to lay off 215 employees at the former Discover Financial Services offices in Riverwoods, Illinois. The layoffs are part of a broader restructuring effort, as reported by the Washington Business Journal [4].

The notice, submitted to the Illinois Department of Commerce and Economic Opportunity, indicates that 193 positions will be eliminated by October 17, 2025, while the remaining 22 positions are scheduled for termination in May 2026 [4]. These layoffs are tied to Capital One's decision to wind down Discover's mortgage business [4].

The announcement comes as Capital One continues to integrate Discover Financial Services, which it acquired in a significant deal in the second quarter of 2025. The acquisition, valued at $51.8 billion, has been associated with higher provision expenses, contributing to a 1% decline in aggregate net income for FDIC-insured banks in the second quarter [2].

Capital One reported a $4.3 billion second-quarter loss, largely due to the integration costs of Discover, which were originally estimated at $2.8 billion but are now expected to exceed this amount [2]. The integration expenses for the first half of the year totaled $409 million [2].

The layoffs are also subject to the Worker Adjustment and Retraining Notification (WARN) Act, which requires employers with 100 or more employees to provide a 60-day notice of significant layoffs or plant closings. A class action law firm, Strauss Borrelli PLLC, is investigating whether Capital One failed to comply with this requirement [3].

Capital One's decision to cut 215 jobs at the former Discover offices is part of a broader trend in the banking sector, where net income dipped in the second quarter compared to the first quarter, largely due to increased provision expenses tied to acquisitions [2]. Despite the challenges, the banking sector reported a return on assets ratio of 1.13% in the second quarter, with community bank profits rising 12.5% from the first quarter [2].

The layoffs are expected to have a significant impact on the local community and may also affect the broader financial landscape as Capital One continues to integrate Discover Financial Services.

References:
[1] https://www.cbsnews.com/chicago/video/capital-one-laying-off-215-at-former-discover-headquarters/
[2] https://finance.yahoo.com/news/fdic-capital-one-discover-deal-122541385.html
[3] https://straussborrelli.com/2025/08/27/capital-one-warn-act-investigation/
[4] https://seekingalpha.com/news/4490262-capital-one-to-cut-215-jobs-at-former-discover-offices-report