I didn't work at Capital One, but this sounds familiar to what I saw working at another big bank that I will not name. An entire division basically got laid off with a select few people being "promoted" to "Principal Engineer" (more work without pay raise) and they replaced everyone else with contractors. It did not go well. Last I remember, the exec they pulled in that spearheaded this reorg left after only being in that position for a year or so.
I do not miss working there.