Capital One Financial is cutting more than 1,100 jobs at Discover's Chicago-area headquarters, with 1,075 employees to be let go in May and another 81 on 1 June. The cuts are part of Capital One's ongoing integration of Discover following its acquisition. The layoffs bring the total number of scheduled job cuts the company has notified Illinois of to 1,748, occurring between October 2025 and this October. Capital One is providing affected employees with at least 60 days' notice, enhanced severance, benefits and outplacement resources. The cuts come amid broader job reductions across the banking sector. Morgan Stanley is eliminating about 2,500 workers, whilst Bank of America, Citi and Wells Fargo have all projected lower headcounts this year.

Capital One reported Q4 2025 revenue of $15.62 billion, up 53.3% year-on-year and beating analyst estimates of $15.49 billion. However, non-GAAP earnings per share of $3.86 missed expectations by 6.8%. The revenue growth was driven by the integration of Discover, which boosted purchase volumes and loan balances. CEO Richard Fairbank highlighted strong new account originations from marketing efforts but noted increased operating costs tied to integration and premium customer investments. Despite revenue strength, profit fell short due to higher expenses and increased provision for credit losses. The company's operating margin improved to 16.8% from 14.5% year-on-year. Management expects continued investment in technology infrastructure and AI, alongside integrating Discover and the newly announced Brex acquisition. The company anticipates near-term pressure on its efficiency ratio but believes these investments will drive future growth.

Under the terms of the agreement, Discover shareholders will receive 1.0192 Capital One shares for each Discover share, representing a premium of 26.6% based on Discover's closing price of $110.49 on February 16, 2024 . Transaction is 100% stock consideration.