Dutch bank ABN Amro plans to slash 5,200 jobs by 2028 — what’s behind the layoffs?

Dutch Bank ABN Amro NV could cut 5,200 full-time positions by 2028 as new Chief Executive Officer Marguerite Berard aims to improve profitability, according to a report by Bloomberg News.

The Dutch lender said the net reduction in headcount compared to last year is expected to be completed within the next three years. About half of this decline will be due to attrition. As of the end of 2024, the bank had approximately 22,000 full-time staff and 3,670 external contractors.

“We know more needs to be done to increase our returns and competitiveness,” Berard said in a statement.

Berard, who became the bank’s first female chief when she took over from Robert Swaak in April, has pledged to cut costs and improve capital allocation to boost profitability. It has embarked on a restructuring at the Amsterdam-based lender, leading to around 1,000 job cuts this year, and earlier this month announced its biggest acquisition since ABN Amro relisted on the stock market a decade ago.

ABN Amro’s goals

The Dutch bank aims to increase its return on equity to at least 12% by 2028, while aiming for a cost-to-income ratio below 55%, according to a statement published before Tuesday’s capital market day.

The previously announced €960 million ($1.1 billion) deal to acquire NIBC Bank from Blackstone Inc. will expand ABN Amro’s presence in the Netherlands. Invested capital is expected to return approximately 18% by 2029. The bank also recently completed the acquisition of German asset manager Hauck Aufhäuser Lampe AG.

ABN Amro’s shares are up nearly 80% so far this year.

According to the statement, the bank is streamlining its activities by reducing the number of legal entities, digitalizing processes, replacing old systems and utilizing artificial intelligence.

ABN Amro also aims to increase its revenue to over €10 billion by 2028. Its new goals include strengthening its position in Dutch retail banking and becoming the “top five private banks” in Europe.

On Tuesday, it was announced that it had reached an agreement to sell its personal loan business Alfam subsidiary to Rabobank.

Berard, a former BNP Paribas SA executive, is guiding the lender as the Dutch state continues to reduce its stake. The government aims to reduce its stake in ABN Amro to around 20% from 30.5% previously, as announced in September.