ING announces 2,700 job cuts in Netherlands
Yet the Dutch banking and insurance group does not expect to have to fire people.THE HAGUE – The Dutch banking and insurance group ING Group has announced that 2,700 job positions are to be cut in the Netherlands, including 1,000 personnel with a permanent contract.
The company does not expect to have to fire people, because workers will be offered other jobs or leave through 'natural wastage' such as retirement or voluntary job changes.
The bank’s insurance sector will be hardest hit by the cuts, which are part of a reorganisation announced in January on ING’s plans to cut 7,000 jobs worldwide this year as part of an initiative to save EUR 1.0 billion.
The spokeswoman said the job cuts were necessary because of "current economic circumstances and developments in the financial sector."
"We must adapt to reality."
Separately, ING also said on Wednesday it had completed the sale of its life insurance business in Taiwan to the Taiwanese group Fubon Financial Holding for EUR 462.4 million.
The sale will mean a loss of EUR 292 million for ING in its fourth quarter 2008 results, said another ING spokesman, Nanne Bos.
"This sale is not linked to the (economic) crisis," he added.
The main Dutch trade union federation FNV said it was surprised such large numbers of jobs will be lost at a time when the bank is receiving extensive government support.
The new cuts come on top of those already announced in connection with the merger of ING and the Postbank. ING now employs around 30,000 people in the Netherlands.
[Radio Netherlands / AFP / Expatica]