Capital One Cutting Jobs

The company wants to lower operating expenses by around $700 million on a pretax basis.
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Capital One Financial

(COF) - Get Report

is cutting jobs and restructuring some of its operations in order to reduce expenses, the lending company said Wednesday.

Roughly 2,000 jobs will be eliminated, about half of which have already occurred. The company expects to achieve additional savings from attrition and the closing of certain positions that are currently vacant.

The goal is to lower operating costs by around $700 million on a pretax basis, with $400 million of that amount coming next year and the rest in 2009. The company will record pretax charges of approximately $300 million over the course of the restructuring, including $200 million this year.

Second-quarter earnings will be cut by about 15 cents a share and full-year profits by around 33 cents a share, Capital One said.

The plan includes consolidating operations across similar product groups and merging overlapping functions, reducing layers of management, streamlining back-office, middle-office and corporate functions, and better handling of vendor, supplier and technology spending.