AMSTERDAM, Netherlands - Dutch financial services company, ING Group stated on Monday that it is planning to layoff 7,000 employees as it makes the move towards digital platforms.
The company said that it is planning to save $1 billion (900 million euros) annually by the year 2021 owning to the layoffs.
ING added in its statement that it was forced to slash 12 percent or 7,000 out of its 52,000 strong work force because of regulatory burdens and ultra-low interest rates.
The company further plans to enhance the number of initiatives focussed on improving its customer experience and efficiency.
ING is planning to invest 800 million euros in digital technology that it plans to launch over five years in Spain, Italy, France, Austria and the Czech Republic.
The company said in a press statement, “It is inevitable that the various measures and intentions announced today may have a significant impact on many of our colleagues. It means some functions will change significantly in nature. It might mean that the location of functions will change. And it might mean that positions will no longer be there in the future. All-in-all, over the coming five years, around 7,000 functions might be impacted by these effects, including 950 positions employed by external suppliers.”
The company’s workforce in Belgium would be slashed by around 3,500 while its Netherlands office will suffer 2,300 job cuts over the next five years.
The company has been on a cost-cutting spree since 2009, when it laid off a part of its workforce to rebuild and reinstate its insurance activities after the state bailed it out, following a financial crisis.
0 comments:
Post a Comment