ABN Amro Plans to Cut Nearly 15% of the Workforce

Amsterdam-based bank, ABN Amro announced today that it is planning to shed nearly 3,000 jobs by the end of 2024 in an effort to digitise the banking structure. The bank looks set to limit its international presence to focus more on the Netherlands.

In the press release, the third-largest Dutch bank mentioned that the cost reduction measures will help ABN Amro to save around 700 million euros by 2024. The bank hosted a virtual investor day on Monday with a theme of ‘A personal bank in the digital age’.

The bank plans to invest around 300 million euros in strategic investments along with a target of 8% on the return on equity (ROE). ABN presented a cautious economic outlook with limited growth. The bank's share value has already dropped by more than 50% since the start of the Coronavirus Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term pandemic. The shares lost another 5% after today’s announcement.

“Today we present the outcome of the strategy review and our vision for the bank. 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 the first step. Today we announce we will be a personal bank in the digital age, serving clients where we have the scale in the Netherlands and Northwest Europe,” Robert Swaak, CEO at ABN Amro, said in a statement.

Digitisation

ABN Amro outlined the importance of digitisation in today’s banking. The Dutch bank aims to become a personal bank in the digital age through the introduction of innovative digital banking products. “We are a personal bank in the digital age, engraining the customer experience. We deliver a convenient daily banking experience increasingly digitally. At moments that matter we support our clients with sector and sustainability expertise,” the announcement cites.