The banking group aims to bring its costs under €4.7bn in 2024
ABN AMRO to trim its workforce by nearly 15% by 2024. (Credit: ABN AMRO Bank N.V.)
ABN AMRO has disclosed intentions to cut almost 3,000 jobs or nearly 15% of its workforce by 2024, while focusing on operating at scale in the Netherlands and Northwest Europe.
A significant part of the proposed job cuts will take place from 2022 onwards, revealed the Dutch banking group.
ABN AMRO said that the impact of the job cuts on the staff will be reduced through natural attrition.
The Dutch banking group is aiming to generate an additional €700m in cost savings, thereby bringing its costs under €4.7bn in 2024.
For the year 2021, the bank expects its costs to be €5.3bn, which will be €200m more than the costs in 2020. The increase will be driven by higher regulatory levies, anti-money laundering (AML) costs, and strategic investments, said ABN AMRO.
The bank expects to allocate €300m for strategic investments, while keeping a restructuring provision of nearly €150m through 2023.
ABN AMRO said that it plans to build a future-proof bank through rigorous simplification and centralisation of its operating model.
The bank estimates almost 90% of high volume processes to be digitalised end-to-end by 2024. It plans to further streamline the product portfolio by nearly 60% by 2024.
Furthermore, the Dutch group will continue to bring down the number of branches with clients inclining towards digital transactions.
ABN AMRO CEO Robert Swaak said: “Our strategic pillars – customer experience, sustainability and future-proof bank – remain our guiding principles in acting on our purpose ‘Banking for better, for generations to come’. With our strong brand and attractive market positions across all segments we have a strong foundation.
“Our strategy review now gives us a distinct profile and focus. The wind-down of the CIB non-core portfolio as announced in August was a first step.”
ABN AMRO to sell its Gustav Mahlerlaan head-office
The Dutch bank also disclosed plans to divest its headquarter office at Amsterdam Zuid in 2021. However, the banking group will lease back a part of the building to continue as its headquarters.
ABN AMRO also announced plans to redevelop its second main office at Foppingadreef in Amsterdam Zuidoost to accommodate nearly 10,800 employees.
Earlier this month, the Dutch banking group reported net profit of €301m in Q3 2020, which is a 46% reduction compared to €558m of net profit made in Q3 2019.