Saturday, 25 January 2014 - 04:36
Rabobank cuts up to 2000 jobs
The Rabobank announced Friday evening it will cut an additional 1,000 to 2,000 jobs as part of their program "Vision 2016." The total number of banks will be reduced to 100, baring in mind that the sum of all expenses has to be 220 million euros less in 2016. Rabobank / Flickr 'Operating from within a central organization with lower overhead, makes it better, faster, and smarter,' said Ralf Dekker, Rabo CEO, leading the reorganization. It was no secret that one of the measures of the Vision 2016-program was to cut 8,000 of the 28,000 jobs, and 36 local banks. These 1,000 or 2,000 job cuts are added on. By late December it became evident that 300 local establishments will shut down. The Rabobank wants to merge all Dutch activities into one Rabo International to increase the cost-effectiveness, at the same time fitting perfectly in the image of one compact, efficient Rabobank organization. Vision 2016, introduced by former CEO, Piet Moerland, will be implemented over the next three years, transforming the local Rabobank establishments into a more uniform and cost-affective entity, in contrast to the current collection of independent banks. Rabobank is struggling financially. Despite the 2.1 billion euro profit over 2012, the profit actually dropped with 20 percent compared to the year before. The Bank was fined 774 million euros for fraud in the Libor case, there was a board crisis, a doping affair, and local banks were placed under trusteeship.