Bank ABN Amro will make its biggest staff cut since the financial crisis, cutting 5,200 jobs by 2028, as part of a restructuring aimed at improving profitability and strengthening its position in the European market.
According to a “new strategy” presented this Tuesday, 25th, by the entity, the bank, which has around 27,500 employees after recent acquisitions, expects to have around 22,300 workers at the end of 2028, although half of the reduction will occur due to natural turnover, said management, which explained that there will be a “solid social plan” for those affected.
The executive president (CEO) of ABN Amro, Marguerite Bérard, defended the new plan as “an ambitious strategy” for the entity.
“With solid roots and a strong Dutch heritage, our focus is on sustainable and profitable growth in northwest Europe,” he said.
The strategy boils down to three objectives: accelerate growth, reduce expenses and reallocate capital.
The bank establishes for 2028 a return on equity of at least 12%, a cost ratio of less than 55% and a revenue of more than 10,000 million euros.
ABN Amro emphasizes that it will boost its retail business by taking advantage of digitalization and the growth of brands such as Tikkie and BUUT, and will strengthen its mortgage and savings business with the planned purchase of NIBC.
Furthermore, after the acquisition of the German management company Hauck Aufhäuser Lampe, the private banking area seeks to position itself among the top five in Europe.
At the same time, the bank will simplify its structure, eliminate legacy technological systems and integrate Artificial Intelligence into operational processes to reduce costs and increase efficiency.
The restructuring takes place in a context of increasing movements in the Dutch banking sector, with a focus on improving profitability.
In recent weeks, ASN Bank announced that it will cut 25% of its workforce, while ING announced possible layoffs of up to 950 employees in 2024 and 2025.
For its part, ABN Amro also today confirmed the sale of personal loan subsidiary Alfam to Rabobank, although it will continue to offer these products through agreements with third parties.
The transaction is pending regulatory approval and is expected to be completed in the third quarter of 2026.
With the progressive withdrawal of the Dutch State as a shareholder – the Government continues to reduce its stake, which now stands at around 20% -, the entity seeks to improve its valuation on the stock exchange and show, according to Bérard, that it is “a very strong bank” and that it “will continue to be independent”.