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Wed, 26 Nov, 2014 12:00:31 AM FTimes- Xinhua Report, Nov. 26
Further digitization of Dutch bank ING's services is expected to reduce its workforce in the Netherlands by around 1,700 full-time Equivalents (FTEs) over the next three years, the ING announced on Tuesday.
ING also said it will reduce the number of positions employed by external suppliers by 1,075. FTE is a unit to measure employed persons.
The cuts of jobs will mainly occur at the headquarters of ING Retail Banking and in the back offices, call centers and IT departments in the Netherlands, according to the bank.
For these measures, a pre-tax redundancy provision of 320 million euros (398 million U.S. dollars) will be booked in the fourth quarter of 2014. ING announced an investment of 200 million euros to further simplify and automate IT systems and processes.
The workforce reduction will lead to significant cost savings in the coming years. From 2018 onwards, the cuts are expected to result in annual gross savings of around 270 million euros, according to the bank.
Ralph Hamers, CEO of ING Group, said in a press release the ING is "creating a consistent customer experience by integrating its service channels in the Netherlands and by making a substantial investment to simplify and upgrade its IT systems".
The CEO vowed to do his utmost to build a record of helping the employees affected to find new job opportunities.
ING, which currently employs 53,000 worldwide, is not the only bank cutting jobs due to digitization. Earlier this month another major Dutch bank, ABN Amro, announced a reduction of 650 to 1,000 FTEs by 2018 in retail banking.
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