Yesterday Keloland reported that 750 employees in Sioux Falls will be losing their jobs:
Capital One tells KELOLAND News it's shifting its call center strategy. According to Julie Rakes, director of external communications, this will "allow us to become nimble, flexible and scalable to meet our customer needs."
"We have made the difficult decision to close our Sioux Falls site by the end of 2015 and will be moving the work to our other locations within our network," Rakes said.
750 employees will be affected. The company says employees can apply for other jobs within the company or it will help employees find new jobs and will also offer severance packages. At one time Capital One had 1,000 employees in the Sioux Falls office.
Pat Costello from the Governor's Office of Economic Development tells KELOLAND News that he received a phone call Wednesday from Captial One notifying the state it would be closing its Sioux Falls operations.
Capital One says its had too much turnover and a hard time filling open positions. Capital One says it will set up an on-site Career Development Center to help employees with resume writing and interview skills to find new jobs.
"We're very dissapointed to hear that Capital One will be exiting the market. We understand and respect the decision of the company and all businesses, large and small have to evaluate their business plans and operations from time to time and make decisions that are in the best interest of their stockholders," Costello said.
And Capital One stockholders can thank South Dakota taxpayers who gave them $200,000:
In 2011, Capital One aquired HSBC and announced it would add 400 jobs in Sioux Falls. The South Dakota Governor's Office of Economic Development offered Capital One a $200,000 grant to help with the cost of training new workers.
Previous Story: Capital One Financial Corp Adds 400 Jobs
Don't expect a thank you note from Capital One stockholders. They will just take the money and run.
Only "smart communities" would take money away from taxpayers and give to big corporate special interests in order to create jobs that are not needed. I wonder how much the GOED offered Capital One to not make the decision to leave South Dakota? I wonder if the Governor will now spend less of our taxes on subsidizing recruiting costs for private business interests, since we have 750 less jobs to fill? Perhaps someone should tell the Blue Ribbon task force that we can pay teachers more by paying corporations less by stop subsidizing their expansions via TIFs and other so-called economic development grants, by stop subsidizing their recruitment costs, and by stop subsidizing their training costs.
But that won't happen, since the task force is being driven by "stakeholders", or better known as "special interests". I am sure the Blue Ribbon task force will instead come up with more ways to tax the citizens of South Dakota. Then the South Dakota legislature will rubber stamp it next session.