Dutch banking group ABN Amro has decided to slash its global workforce by 15% over the next four years as it looks to shrink its investment bank in a bid to cut costs.
The move will result in up to 2,800 redundancies, with the majority of the reduction expected to start in 2022. The bank aims to save around €700m in costs by 2024.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The bank said that it intends to minimise the effect on employees through natural attrition and reskilling in roles where shortages are anticipated.
Furthermore, digitisation will enable the bank to operate with a smaller workforce.
In addition to redundancies, the banking group is planning to sell its headquarter office at Amsterdam Zuid and lease a part of it back. The transaction is expected to result in a book gain.
Besides, it plans to redevelop its second main office at Foppingadreef in Amsterdam Zuidoost into a ‘beyond Paris-proof’ landmark base that will house around 10,800 employees.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataABN AMRO CEO Robert Swaak said: “We are very pleased to finally present the redevelopment plans for our base in Amsterdam Zuidoost and we hope to inspire many others with this icon of sustainable housing as we have done previously with our circular pavilion Circl. Moreover, the new ‘Foppingadreef’ will be an inspirational new hub for most of our colleagues.”
Notably, this May, ABN Amro decided to shelve its Kendu investment app after failing to garner the interest of its customers.
Job cuts by other lenders this year
In September this year, Lloyds Banking Group (LBG) decided to make 865 roles redundant to slash costs as surge in bad loans amid the Covid-19 pandemic affected its income.
In the same month, Australian investment bank Macquarie Group reportedly laid off 70 people in the US, where it has a workforce of over 2,500.
In July, a report said that Swiss banking giant Credit Suisse is planning to lay off half of the employees at its investment banking arm in mainland China.
This followed HSBC French union’s announcement that HSBC investment banking unit in France had decided to slash 38% of positions by the end of 2021.
In January this year, Swiss banking group UBS announced plans to slash 500 jobs as part of a revamp of its wealth management unit.
