Dutch financial services company ING Groep NV (ING) said Wednesday it will cut 800 jobs over the next three years as part of a cost-saving plan that involves merging its Dutch insurance brands.
ING said the plan should have a positive impact from 2010 and lead to pretax annual cost savings of EUR100 million from 2013.
The existing Nationale Nederlanden, RVS and ING insurance brands will be combined into one organization under the Nationale Nederlanden brand at a cost of EUR165 million over the next four years.
Chief Executive Jan Hommen said: “Now is the time to adapt our Dutch insurance operations to the changing market environment and position them for the future.”
He said that streamlining the company and creating dedicated business units for client groups will better serve customers in the Netherlands.
In May ING posted a worse-than-expected first-quarter net loss as impairments on real-estate and equity investments hit its insurance operations, while its banking business remained profitable despite heavy provisions against loan losses.
The company received a Dutch state capital injection of EUR10 billion in October and a EUR27.7 billion state guarantee on its Alt-A mortgage portfolio in January.
ING shares closed Tuesday at EUR7.17.
Bart Koster; Dow Jones Newswires; +31 20 571 5201; Bart.koster@dowjones.com
