ING Bank, one of the many large financial institutions in Europe, is axing a lot of jobs in the next few years. A total of 7,000 employees will be let go or “put on other projects.” More than half of the job cuts take place in Belgium, where both ING and its Record Bank subsidiary take a big hit. Half of the Belgian bank branches belonging to either bank will be closed as well.

The news about ING’s demise came as quite a shock to many people. Anyone who has been keeping tabs on the financial sector over the past few years saw this news coming from miles away, though. With roughly 7,000 jobs being cut by this bank in the coming years, things are not looking good.

ING Bank Is Cracking Under Pressure

Although these plans will only be executed by 2021, it goes to show the European bank has little confidence regarding its future. Reduction of overhead costs is the top priority right now. Keeping in mind how ING Belgium employs 8,131 people, cutting 3,150 jobs in Belgium alone spells big trouble.

Local unions are not too happy about this news and feel the ING upper brass took a “dramatic” decision. Even though the unions are positive ING is still a financially stable bank, it is doubtful the situation is rosy right now. Every bank around the world is struggling to turn a profit and please shareholders. European banks are no exception in that regard.

Interestingly enough, ING is hosting their International Investor Day later today. A global reform of the bank’s operations will be unveiled in the coming 24 hours. According to a spokesperson, the bank wants to go big on the digital aspect and create one centralized portal for all clients’ needs. The group will also invest 800m EUR in different projects to make all of this possible.

It is not the first time jobs are being cut in the Belgian financial sector. Earlier this year, AXA Belgium announced they would cut 850 jobs. P&V, another institution active in the insurance industry, announced they would reduce their workforce by 15% as well. Trouble is brewing in the financial sector, and this seems to be just the beginning of what will happen on a global scale in the next few year.

Source: HLN (Dutch)

Header image courtesy of Shutterstock

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