The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Financial Services Financial And Insurance Activities Financial Service Activities, Except Insurance And Pension Funding 64 - Financial service activities, except insurance and pension funding
500 - 2,700 jobs Number of planned job losses
Announcement Date
2 November 2005
Employment effect (start)
Foreseen end date
Description
On 2 November 2005, Dutch financial services company ING Groep NV announced plans to cut 500 jobs in its operations and IT banking division and to outsource about 2,200 positions in the Benelux countries.
An ING spokeswoman said it was not yet clear when the restructuring costs would be booked. She said the group was in negotiations with potential partners to outsource the 2,200 positions, but could not give details yet. ING also said it would not extend contracts for about 1,400 external staff. 550 of these contracts already ended. ING's Benelux operations and IT banking division currently employs 13,000 people. The spokeswoman said most of the job cuts were in the banking division, but some were in insurance.
ING would take into account both business criteria and social considerations when selecting external parties for outsourcing and would seek to help those made redundant find another job.
On 26 April 2006 ING announced that some 350 employees of ING will be transferred to Logica CMG. This agreement is part of the reorganisation announced on 2 November 2005. Besides the initial cost reduction of 180 million euro, an annual cost reduction of 230 million euro is expected. The final contract with Logica CMG will be signed in the summer of 2006.
On 18 May 2006 ING announced that it has a Memorandum of Understanding with the UK company Astron on outsourcing the processing of banking and insurance documents. 800 Jobs will be effected of which 700 are located in the Netherlands and 100 in Belgium. ING expects that all employees will be employed by Astron and guarantees the Dutch trade unions that the salary of the relocated employees will stay the same. Furthermore ING promised it will take back an employee who is dismissed by Astron within three years of the transfer date. The final contract with Astron is expected to be signed in the third quarter of 2006.
On 4 July 2006, ING announced that it has signed a Memorandum of Understanding (MOU) with a group of suppliers consisting of Accenture, Atos Origin, Getronics and KPN. The MOU covers the outsourcing of workplace services of ING's banking and insurance operations in the Netherlands and Belgium. Workplace services include the installation, maintenance and support of the desktops, laptops, printers and telephones. The final contract with the suppliers is expected to be signed at the end of 2006. The contract which will run for a five year period is expected to have total value of approximately EUR 800 million. ING expects that approximately 490 FTE's in the Netherlands and 60 FTE's in Belgium will be transferred to the suppliers.The transaction is part of the efficiency initiatives announced at ING Group in 2005, which are expected to produce annual cost savings of approximately EUR 460 million, including EUR 230 million for the streamlining and outsourcing at the Operations & IT organisation. The labour conditions in the MOU for employees are in line with the Social Framework Sourcing that was agreed with the Dutch labour unions as well as with the collective labour agreement that was reached with the Belgian labour unions. The transaction is pending advice from the Works Councils and the outcome of the negotiations on the detailed employment conditions with the unions.
Eurofound (2005), ING, Outsourcing in European Union, factsheet number 62722, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/62722.
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