Rabobank to cut five thousand staff and downsize branch network

Rabobank to cut five thousand staff and downsize branch network

Dutch lender Rabobank is to cut its workforce by 5000 over the next five years after seeing profits crushed by the global pandemic.

Rabobank reported €1,096 million in net profits for 2020, 50% down on the previous reporting period. The effect of Covid-19 was primarily visible in the level of impairment charges, which rose to €1,913 million and are expected to worsen throughout the coming year.

The bank says it will downsize its traditional branch network and invest further in digital technology over the coming years in a bid to improve its operational and financial performance in a low interest environment.

This is expected to result in an average annual reduction of the 40,000-strong workforce by 1000 full time roles over the next five years.

Chairman of the managing board Wiebe Draijer, says: “Covid-19 was and is the most significant health crisis of our generation. Its effects on our customers, our employees and societies at large have been dramatic. And this is still ongoing. From health threats to lockdowns, Covid-19 continues to dominate people’s lives, businesses and the global economy. Crises call for rapid response and adaptation. And this is what Rabobank has demonstrated during 2020 and will continue to do in 2021."

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