Page last updated at 18:14 GMT, Monday, 26 January 2009

ING to shed 7,000 jobs this year

ING bank

Dutch banking giant ING has said it is to cut 7,000 jobs as it seeks to save 1bn euros ($1.29bn; 949m).

No breakdown has been given yet as to where the jobs will be lost from the bank's 130,000 workforce.

The troubled bank and insurer also said that its chief executive, Michel Tilmant, had resigned.

In October, the Dutch government pumped 10bn euros into ING to help it in the economic crisis. ING now expects to make a 2008 loss of 1bn euros.

ING, one of the world's top 20 banks by market capitalisation and with 85 million clients, will also use a Dutch state guarantee for its loans portfolio.

The bank said the Dutch government would cover 80% of its 27.7bn euros residential mortgage-backed securities.

GLOBAL JOB CUTS
Caterpillar - 20,000
ING - 7,000
Philips - 6,000
Corus - 3,500
Home Depot - 7,000
Pfizer/Wyeth - 20,000
General Motors - 2,000

These securities relate to sub-prime mortgages, made to risky borrowers, and "Alt-A" loans, made to borrowers with a slightly better credit profile.

Mr Tilmant will continue to be an adviser to the bank until he steps down on 1 August.

He is to be replaced by Jan Hommen, currently chairman of the supervisory board.

ING said it was "taking measures to counter the implications of the persistently challenging economic and market conditions".

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SEE ALSO
ING group reports its first loss
12 Nov 08 |  Business
ING to get Netherlands cash boost
19 Oct 08 |  Business

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