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ING wants to cut 1,000 jobs

D.he ING bank cuts 1,000 full-time jobs. They should disappear globally by the end of next year, as the largest Dutch bank announced on Thursday. CEO Steven van Rijswijk cited the economic environment and the downgrading of a large IT project as reasons.

It’s about jobs in South America and Asia, where the bank is cutting locations – and probably also jobs in the Netherlands, which will depend on discussions with employee representatives. The FNV union estimates that 200 to 300 jobs will be lost at home. According to its own information, ING employs more than 55,000 people around the world, although the number is not the same as that of full-time positions due to part-time workers.

Technical intricacies

An important part of the dismantling is related to the fact that ING is heavily reducing its “Maggie” program, which was to modernize internal IT systems and integrate platforms in several European countries. The project was initiated by van Rijswijk’s predecessor, Ralph Hamers. In the summer it was already leaked that it was struggling with technical difficulties.

Economic headwind

Van Rijswijk alluded to this with his justification for narrowing down the project. “The decision was made in the light of the current economic headwind and our knowledge of the complexities and costs of a cross-border system and product integration.” ING is therefore writing off 140 million euros. In the third quarter, the bank posted a net profit of 788 million euros, 41 percent less than in the same period last year.

ING, together with Rabobank and ABN Amro, forms the trio of the largest Dutch financial institutions. Van Rijswijk took over the management on July 1st from Hamers, who switched to Swiss competitor UBS.

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