Capital One is planning to lay off another 286 employees from its Plano, Texas, campus as it continues to terminate its mortgage lending and home equity operations.
According to Dallas Business Journal, the company's exit from the mortgage lending space is a result of the rising interest rate environment and high home prices freezing homebuyer demand.
The 286 layoffs are in addition to 950 employees the company previously laid off in November. A small percentage of former employees moved on to Flagstar Bank.
This latest round of cuts comes from a deal Capital One made in May to sell its $17 billion portfolio of existing home loans to DLJ Mortgage Capital, a Capital One spokesperson told DBJ.
“As always, our focus remains on supporting our associates during this time,” the spokesperson said in an email.
The layoffs are set to take place in October.