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
European Globalisation Fund (EGF)
Year: 2018, Case number: 1
2,300 jobs Number of planned job losses
Announcement Date
3 October 2016
Employment effect (start)
Foreseen end date
31 December 2020
Description
The Dutch bank ING has announced a reduction of 2,300 jobs in the Netherlands to be completed by 2021. The reductions are part of a global restructuring involving 7,000 job cuts, of which 3,500 concern Belgium. According to the company, the cuts are a result of digitalisation and automation in the banking industry, and part of a cost reduction effort intended to create savings of €900 million worldwide for the group. In May 2016, the ERM previously reported on 300 job cuts in the Netherlands that were also attributed to digitalisation. The company is reported to be investing €800 million in digitalisation in an effort to boost their competitiveness. However, internal documents have shown that there is a likelihood that some of the jobs will be relocated to offices in low-cost countries in Eastern Europe and Asia, which has sparked protests from worker representatives. The unions have expressed severe criticism regarding the high number of jobs lost, claiming cuts of this magnitude are not warranted. The unions have also conveyed disappointment towards the company, commenting that the restructuring is irresponsible towards the Dutch society and government, which bailed out the company from bankruptcy in 2008 with a capital injection of €10 billion. Worker representatives are also concerned about the effects of further digitalisation at ING, currently a front runner in digitalisation in the banking sector, as it is likely to push other banks to follow, adding to the many mass redundancies the sector has seen in recent years (Rabobank 2013, 2014, 2016; ABN Amro 2011, 2016).
Sources
3 October 2016: De Volkskrant
22 October 2016: De Volkskrant
3 October 2016: De Financiële Telegraaf
3 October 2016: De Financiële Telegraaf
Citation
Eurofound (2016), ING, Internal restructuring in Netherlands, factsheet number 88970, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/88970.
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