Dutch bank ABN Amro to cut 1,500 jobs

ABN Amro continues its reorganization with new cost savings of 400 million euros (429 million U.S. dollars) and by cutting 1,500 jobs, the Dutch bank announced on Wednesday.

The job cuts come on top of plans of earlier this year, with total cost savings of 500 million euros, to slim down the support and control activities and to reorganize retail.

As a result the total workforce is expected to decline by 13 percent from 26,500 (22,000 internal and 4,500 external FTEs) in 2015 to about 23,000 by 2020.

ABN Amro expects to take a provision of 150 to 175 million euros in the fourth quarter of 2016, once the bank has worked out the new cut plans in greater detail. This provision is in addition to a 144 million restructuring provision already taken in the third quarter.

The Dutch bank, one of the major three Dutch banks together with Rabobank and ING, also announced its figures for the third quarter on Wednesday. The underlying net profit for the third quarter of 2016 was 607 million euros, up 19 percent compared to the same period one year ago.

"I am confident that our plans will enable us to deliver lasting value to our clients, now and in the future," ABN Amro CEO Gerrit Zalm said in a press release.

"In 2016 we updated and extended our strategic priorities and financial targets towards 2020."

"Based on our current strengths and ambitions, a relationship-driven, knowledgeable and digitally savvy bank, active in Northwest Europe and with expertise in selected sectors globally, we are confident that we will meet the priorities set for 2020," Zalm added.

"Making the bank more digital and agile will impact many of us, both positively, but for some also negatively, unfortunately." said Zalm.

The future of ABN Amro will be without Zalm, who was appointed as CEO in 2009. Kees van Dijkhuizen, currently CFO of ABN Amro, will take over the lead around mid-February 2017, as the bank already announced earlier this month. Endit