Holland’s biggest bank, ABN Amro is set to shed hundreds of IT jobs in a bid to rationalise its organisation and improve efficiency.
The move was announced as ABN Amro announced third quarter results that showed a 5.6% fall in profits for the quarter at £762m, compared with £802 in the same period last year.
The bank said it would cut staff by the equivalent of more than 500 full-time head office jobs, predominantly in the corporate IT and risk areas. The cuts will be carried out through a combination of outsourcing, off shoring and redundancies.
Rijkman Groenink, chairman of the bank’s management board, said, "The first nine months of the year have been very much a period of transition as we have focused on implementing and extracting the benefits of the new group structure.
“It is imperative that we accelerate an improvement in our performance to deliver ABN Amro’s targets by the end of 2008."
In September, ABN Amro signed one of largest outsourcing agreements by a European bank, in a deal with five suppliers worth a total of £1.23bn.
The deal, which was praised by analysts for its careful preparation over two years, is expected to release savings of £176m in 2007 and at least £410m a year in the following four years.