Salinas was dealt a mighty economic blow last week as an HSBC call center purchased by Capital One was slated to close. The direct economic impact of the 850 jobs is a $40 million loss in local salaries.
The city has now shifted its focus not to retaining the call center – which had been attempted with an effort called Salinas for Jobs. Instead, the city is now looking to work to replace the lost economic activity with new jobs and new businesses. The development will also focus on continuing to improve the community, and the city is hopeful that Capital One will help in the effort.
In a somewhat apples-to-oranges comparison, recently hired city manager Ray Corpuz said that $40 million in salary would be like cutting the entire Salinas police department and amounts to half of the city’s budget.
From KION.com:
Forty million dollars worth of salaries is what the city of Salinas will be losing after Capital One announced it’s shutting down its Salinas location, putting more than 850 people out of a job.
“It’s a tremendous blow to our overall economic well being,” said Ray Corpuz, city manager.
Corpuz said that $40 million is about about half the city’s budget or wiping out the entire police department.
Read the full article here.