Rabobank, the Dutch cooperative bank announced 5,000 job cuts in the Netherlands.
The bank made a profit of €1 billion in 2020, 50% lower in comparison with 2019. The low-interest rates are named as the most important cause for reduced profitability. Most job cuts will occur at the bank’s local offices, with the number of offices being reduced from 230 to 130 by 2026. The bank will focus more on digital services, a strategy that was already adopted and has been accelerated by the COVID-19 pandemic.
The job cuts will be evenly spread over the next five years and will mostly be achieved through natural attrition and retraining of employees. However, forced dismissals may also be necessary.
According to the bank, the great lower profits underlines the need for a reorganisation.
Rabobank is one of the three largest banks in the Netherlands and has 43,000 employees worldwide.