Rabobank to Cut About 5,000 Jobs in Coming Years to Lower Costs
(Bloomberg) -- Rabobank Group plans to cut 5,000 positions, more than 10% of its total workforce, as the Dutch lender seeks to lower costs after the pandemic hit profit.
Plans to improve the company’s cost-to-income ratio are expected to reduce the workforce by the equivalent of 1,000 full-time jobs over the next five years, according to a statement from the Utrecht, Netherlands-based bank on Thursday.
Rabobank, which employs more than 40,000 people, said net profit plunged 50% to 1.1 billion euros ($1.3 billion) last year, with the coronavirus pandemic “primarily visible” in a jump in impairment charges to 1.9 billion euros.
The lender, best known for financing food and agricultural traders, said the plan to cut jobs will be mix of regular departures and “the reduction of external FTEs, whereas redeployment within Rabobank will partly mitigate the impact on forced leaves.”
Rabobank plans to speed up the use of digital channels, resulting in cuts to its Dutch branch network in the coming years. The bank will “further simplify” its Wholesale & Rural business and sees growth opportunities in Food and Agri and leasing.
The Utrecht, Netherlands-based bank said on Thursday it expects “a deterioration in the credit quality in the business loan portfolio in the course of 2021, which is reflected in the higher level of impairment allowances.”
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