Both Ford Motor Credit Co. and HSBC Holdings PLC last week announced job cuts related to collections work.
Ford Motor Credit, closing an office in Henderson, Nev. on March 31, expects to lay off approximately 200 people as a result, according to company officials. Margaret Mellott, a company spokesperson, says the closing is the result of an overstaffing of collection offices and a reduction in need for the services.
HSBC Holdings PLC will lay off approximately 500 employees as it ends its credit card customer service and collection operations in New Castle, Del., Reuters reported on its Web site.
The job reductions are expected to take place by midyear. HSBC said the actions address "a range of factors, as part of ongoing efforts to balance customer service and business support needs with staffing levels" in the U.S. credit card network.
Ford Motor Credit previously cut more than half of the employees at the office in 2009 and transitioned it from a full-service center to an operation that only handled collections and account servicing.
Other jobs, such as originating new contracts, were redistributed to other centers. At the time, the company blamed the cuts on declining revenue and the sale of its Jaguar and Land Rover brand.
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