Rabobank is to cut 9,000 jobs as part of a new strategy that will see it consolidate its structure.
The Dutch bank plans to operate as a single cooperative with one banking licence and singular financial statements, rather than being split into 106 local banks.
The change means that from 2016 to 2018 it will reduce its headcount by 9,000, with the back-office and support functions set to be hit hardest. It comes in addition to 3,000 job cuts already planned as part of ongoing efficiency programs.
The company says its workforce reduction will be achieve partly via natural wastage and reduced use of external contractors and it will make efforts to avoid compulsory redundancies where possible.
It will also shed a significant amount of its assets, which are heavily focused on mortgage debt, which has a high risk weighting under Basel III. It will refocus its business on agricultural lending and move away from commercial and retail activities.
The plans are part of reforms intended to boost profitability implemented by CEO Wiebe Draijer, who joined the business last year.
Rabobank to cut 9k jobs, focused on back-office
Rabobank is to cut 9,000 jobs as part of a new strategy that will see it consolidate its structure.