Capital One Bank is cutting jobs at branches throughout the state, the latest in years of moves by the banking industry to adjust to the growing number of online transactions.
The bank plans to eliminate assistant branch managers and employees in the investing operation of its discount brokerage operation in New Orleans, Capital One spokesman Steven Thorpe said.
Thorpe declined to provide a specific figure of how many positions are being eliminated.
“It’s a difficult decision, and we’re committed to helping impacted associates through the transition,” Thorpe said in an email.
The moves mark the latest downsizing to hit the banking industry following years of adjustments as a new generation of customers has embraced online banking, said Jonathan Briggs, a New Orleans bank mergers specialist at Performance Trust Capital Partners.
“It really is driven by the demographics,” Briggs said.
Though it’s unclear how many jobs will be lost, Capital One has not notified the Louisiana Workforce Commission that the restructuring involves a mass layoff, a state spokesman said Thursday.
Employees affected by the cuts are being given at least 60 days’ notice and encouraged to apply for other positions in the company, Thorpe said.
Briggs said he teaches a banking course at the University of New Orleans. On the first day of class, he asks students for a show of hands of how many still frequently visit brick-and-mortar banks.
“Less than half of them raise their hands,” he said. “They have checking accounts, but they don’t write checks. They do everything with their phone.”
As a result, he said, banks need fewer customer service-related positions, like tellers or loan officers, because many of those transactions are now taking place online.
“That’s really the angle,” he said. “It will continue, I think, for a while.”
Follow Richard Thompson on Twitter @rthompsonMSY.