Dutch banks to reduce workforce amid AI adoption and cost-cutting – report

Dutch banks are acceptable to chopped thousands of jobs arsenic they follow artificial quality (AI) and instrumentality cost-saving measures to code profitability challenges, Bloomberg reported.

According to the report, the occupation cuts successful the banking assemblage bespeak ongoing efforts to code profitability pressures and accommodate to changing operational demands.

Recently, state-owned lender ASN Bank announced its plans to destruct up to 950 positions by the extremity of adjacent year, arsenic portion of its determination to consolidate its brands.

The slope said the caller strategy, nether the taxable 'Simplify and Grow', forms the 2nd signifier of its ongoing translation that commenced astatine the extremity of 2024.

ABN Amro agreed to get its section rival NIBC Bank successful a woody valued astatine astir €960m ($1.1bn), targeting yearly outgo savings of up to €100m .

The slope did not specify the fig of occupation losses, however, it had already introduced a hiring frost past twelvemonth and reduced its workforce by astir 700 full-time roles successful the 3rd 4th of this year.

Last month, Amsterdam-based ING said that astir 1,000 jobs could beryllium affected owed to ongoing digitalisation, AI initiatives, and shifts successful lawsuit behaviour.

According to expert estimates compiled by Bloomberg, ING’s nett income is forecast to diminution by 6% this year, portion ABN Amro’s is expected to autumn by 8%.

Bloomberg Intelligence has predicted that planetary banks could chopped up to 200,000 jobs implicit the adjacent 3 to 5 years arsenic AI takes connected much tasks distant from humans.

Roles successful the backmost office, mediate office, and operations are considered astir vulnerable.

Despite the occupation cuts, immoderate banking executives judge that AI volition alteration alternatively than destruct a important information of positions.

Several banks person launched retraining programmes for unit to code the shortage and outgo of hiring qualified exertion professionals, said the publication.

"Dutch banks to trim workforce amid AI adoption and cost-cutting – study " was primitively created and published by Retail Banker International, a GlobalData owned brand.

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