ING to Cut 7,000 Jobs in Cost-Savings Drive
03 October 2016 - 5:37PM
Dow Jones News
By Maarten van Tartwijk
AMSTERDAM-- ING Groep NV on Monday became the latest European
lender to announce a new round of layoffs and restructuring as it
seeks to slash costs and invest in digital services.
The Netherlands' largest bank by assets said it would scrap
around 7,000 jobs in the next couple of years in an attempt to
reduce annual costs by EUR900 million ($1.01 billion) by 2021. The
cuts represent around 13% of the bank's global workforce and will
primarily affect employees in Belgium and the Netherlands, ING
said.
The plans were unveiled as part of a wider overhaul in which ING
aims to converge its banking operations in Europe toward one
digital platform. It said it would invest EUR800 million to improve
its digital services.
The measures came along with new financial targets for 2020 that
were more cautious than the previous ones.
ING reiterated its target of achieving a core capital ratio of
more than 12.5% and a leverage ratio of more than 4%. But it said
it would not update its target for a return on equity, a key
measure of profitability, due to "continuing regulatory
uncertainty." The bank currently targets a return of 10% to
13%.
Write to Maarten van Tartwijk at maarten.vantartwijk@wsj.com
(END) Dow Jones Newswires
October 03, 2016 02:22 ET (06:22 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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