ABN Amro to finance digital spend by slashing jobs

ABN Amro to finance digital spend by slashing jobs

ABN Amro is to finance increased spending on digital technologies by cutting a further 1500 jobs over the next four years.

News of the job losses comes as the bank reports a 16% rise in third quarter profits.

Announcing the results, outgoing chief executive Gerrit Zalm pointed to the success of the bank's mobile banking app in attracting and retaining loyal customers, adding: "We now want to take another step forward in delivering in-depth expertise in a digitally-savvy way to our clients and will increase our expenditure on initiatives for growth, innovation and digitalisation by EUR0.4 billion by 2020 compared with 2015."

To finance these initiatives, and to offset cost inflation and levies of approximately EUR 500 million, the bank has set a target of slashing an equivalent EUR900 million from its bottom line by 2020.

The new job cuts come on top of plans outlined in Q2 to shed 1375 jobs in a bid to further rationalise the cost base. As a result of all programmes in place,
the total workforce is expected to decline by 13% from 26,500 to approximately 23,000 by 2020.

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