ING to cut 230 jobs as it has ‘too many' managing directors
The Dutch lender plans to eliminate 230 roles across its wholesale banking division, according to a statement on Monday. The cuts 'will be focused on Directors and Managing Directors in commercial, front office roles' as the lender has 'too many senior roles,' it said.
Shares in ING were 2.1% lower at 11:15 am in Amsterdam. The stock is up about 23% this year to date, compared with about 30% for the wider European banking sector.
ING has guided for costs to rise to as much as €12.7 billion ($14.9 billion) this year. The metric grew by 5.5% in the first quarter on the previous year's period, with ING largely attributing the change to 'the impact of inflation on staff expenses.'
European banks have cited macroeconomic uncertainty and geopolitical tensions as rising risks for their businesses as a result of the global trade war.
ING on Monday said the cuts were prompted by a combination of 'market circumstances' and the goal of 're-balancing' staff. The cuts will be split proportionally across its locations, it said.
The company had 17,287 employees in the wholesale banking division at the end of the first quarter.
Competitor ABN Amro Bank NV earlier this year announced a hiring freeze to help meet its full-year cost guidance and a reorganization of its corporate banking unit in June.
ING Chief Executive Officer Steven van Rijswijk told Bloomberg News earlier this month that he may slow the pace of share buybacks after increasing the amount of money he wants to keep in the bank as safety cushion.
ING will continue to hire in areas where it needs to grow 'specialist skills,' it said in the statement. The company also wants to 'increase the size of our pool of junior talent.'
The bank is also exploring the possibility of acquiring a US banking license, a move that could bolster its access to dollar liquidity in exchange for greater supervision by US regulator, Bloomberg reported in May. The bank has been bolstering the treasury department of its ING Americas division ahead of the push. –BLOOMBERG
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