Dutch financial services giant ING Groep NV (ING) Wednesday revealed restructuring plans that will combine its local insurance brands under a single brand. The move would also result in the elimination of 800 job over a period of three years, primarily through attrition.
The company said it will combine Nationale-Nederlanden, RVS and ING Verzekeren Retail into one customer-oriented organization under the Nationale-Nederlanden brand. As a result ING said the new structure under Nationale-Nederlanden would be reinforced, with dedicated business units for retail customers, small and medium-sized enterprises and corporate clients.
ING said it would invest €165 million in the first four years to realize the transformation process. The company expects to achieve an improved financial performance of the Dutch insurance operations, leading to a positive P&L impact from 2010, accumulating to annually €100 million before tax from 2013 onwards.
The 800 job cuts spread over three years would be made thorough through natural attrition, internal reallocation and by discontinuing temporary contracts. ING said the job reductions measures would be made in accordance with applicable regulations, after discussion with unions and respective works councils.
ING is currently trading at $10.35, up 21 cents or 2.07%.
For comments and feedback: editorial@rttnews.com