Rabobank cuts additional 9,000 jobs as part of restructuring strategy

Rabobank is to cut 9,000 jobs over the next couple of years, primarily in back office and support functions, as part of a restructuring overall in response to tougher regulation, and will shrink its balance sheet by €150bn ($164.6bn) by 2020. These job cuts are in addition to the 3,000 job losses that are already planned. Rabobank had long been regarded by investors as one of Europe's safest lenders, however, regulators began voicing concerns about the bank after it admitted in 2013 to its involvement in a global rate-rigging scandal, which resulted in a $1bn fine.

Dutch cooperative bank Rabobank said on Wednesday it will reduce its workforce by 9,000 jobs – or roughly 25% – in the coming years.

The new reorganisation – its third since 2011 – is needed to adjust to changes in consumer behaviour and tougher legal requirements from regulators, the bank said.

The bank hopes the measures will boost operating profit by €2bn by 2020.

The jobs will go between now and 2018 and the bank hopes many will be accounted for by not replacing staff who leave. Interim positions will also be reduced. Admin and support services will be hardest hit, the bank said.

In 2011, Rabobank cut 1,200 jobs and a further 10,000 job losses were announced in 2013. The company currently has a workforce of around 39,000, spread over 47,000 employees. Of those, some 30,000 jobs are in the Netherlands, most of which are by local branch organisations.

Rabobank was the only big Dutch bank to survive the credit crisis without state support. However, its reputation took a knock last year with the Libor interest rate scandal, in which Rabobank staff were central.

In a statement, chairman Wiebe Draijer said the bank wanted to be closer to its customers ‘literally and metaphorically’.

‘We are asking a great deal from our staff in order to achieve our goals and we are fully aware that this is not easy,’ Draijer said.