Business

Discover Home Loans to close Charlotte office, affecting 14 jobs

Discover Home Loans is closing its office in southwest Charlotte and will lay off 13 people starting August 15. One employee will stay with the company.

According to a notice filed this week with the state about the local office closure, the company said the job cuts are the result of “a corporate reorganization.” Earlier this week, Discover said it will close its mortgage unit, eliminating 460 jobs, or about 3 percent of its total workforce.

In an email to the Observer Thursday, Jon Drummond, Discover’s director of public relations, confirmed that the company’s actions are related to its announcement of the home loan business.

Discover bought the home loan origination business from Ballantyne-based Tree.com about three years ago. Discover Home Loans’ Charlotte office is located at 2015 Ayrsley Town Blvd., Suite 202.

The company said even though the job cuts won’t start until Aug. 15, the affected employees were notified Tuesday “in order to enable the affected employees to better transition to new employment.”

Drummond said all 13 employees who will be laid off will receive a severance package and out-placement assistance. The eliminated positions are technology-related support for the mortgage business, Drummond said, rather than mortgage brokers. One person who has the option to stay with the company will be relocated if necessary, he added.

In a statement this week, the company said the employees whose jobs were eliminated were “primarily” in Irvine, Calif., and Louisville, Ky.

“The business is not projected to meet our financial expectations due to ongoing challenges to our home loans operating model, so we made the difficult decision to exit,” Carlos Minetti, president of consumer banking for Discover, said in the statement.

A company is required to file a Worker Adjustment and Retraining Notification (WARN) with the N.C. Commerce Department if it plans a closure or mass layoff.

Peralta: 704-358-5079;

Twitter: @katieperalta

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