22 December 2004 Dutch bank ABN Amro, is to cull a quarter of its IT workforce over the next 18 months, with some 1,200 jobs to go.
Most of the job losses in IT will come through consolidation, and some outsourcing and offshoring. The company said that most of the reductions will be in Europe.
By trimming its workforce, the bank plans to save £550 million in fiscal 2004, and save about £540 million annually from 2007 onwards.
The actions come amid rising interest rates for the bank, which has seen profits falling in 2004. In November, the company’s CEO, Rijkman Groenink reported a slump in mortgage lending in the US; ABN Amro’s biggest market.
The investment banking and corporate lending arm of ABN Amro, meanwhile, also stands to lose 1,100 jobs as part of the redundancy plan.
Earlier this month, two other banks announced similar plans. Deutsche Bank said that it will cut 1,920 jobs in Germany. Credit Suisse First Boston, meanwhile, plans to cut 300 jobs globally.