Dutch banks are set to cut thousands of jobs as they adopt artificial intelligence (AI) and implement cost-saving measures to address profitability challenges, Bloomberg reported.
According to the report, the job cuts in the banking sector reflect ongoing efforts to address profitability pressures and adapt to changing operational demands.
Recently, state-owned lender ASN Bank announced its plans to eliminate up to 950 positions by the end of next year, as part of its decision to consolidate its brands.
The bank said the new strategy, under the theme ‘Simplify and Grow’, forms the second phase of its ongoing transformation that commenced at the end of 2024.
ABN Amro agreed to acquire its local competitor NIBC Bank in a deal valued at about €960m ($1.1bn), targeting annual cost savings of up to €100m .
The bank did not specify the number of job losses, however, it had already introduced a hiring freeze last year and reduced its workforce by nearly 700 full-time roles in the third quarter of this year.
Last month, Amsterdam-based ING said that around 1,000 jobs could be affected due to ongoing digitalisation, AI initiatives, and shifts in customer behaviour.
According to analyst estimates compiled by Bloomberg, ING’s net income is forecast to decline by 6% this year, while ABN Amro’s is expected to fall by 8%.
Bloomberg Intelligence has predicted that global banks could cut up to 200,000 jobs over the next three to five years as AI takes on more tasks away from humans.
Roles in the back office, middle office, and operations are considered most vulnerable.
Despite the job cuts, some banking executives believe that AI will transform rather than eliminate a significant portion of positions.
Several banks have launched retraining programmes for staff to address the shortage and cost of hiring qualified technology professionals, said the publication.
“Dutch banks to reduce workforce amid AI adoption and cost-cutting – report ” was originally created and published by Retail Banker International, a GlobalData owned brand.
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