Volksbank to slash at least 700 jobs in major reorganization

De Volksbank, the parent company of banks SNS and ASN, is cutting between 700 and 750 full-time jobs in a reorganization announced on Tuesday. The company also plans to merge its four banking brands into one, strong banking brand.

The bank currently employs around 4,500 people. By July 1, approximately a sixth of these jobs will disappear. The bank cannot rule out layoffs.

De Volkskbank will also close branches, though it said it wanted to maintain national coverage, and simplify its organizational structure. These measures should cut costs by approximately 70 million euros per year.

De Volksbank called the reorganization a “transformation” to a new phase. The bank has been in government hands since the rescue of SNS Reaal in 2013. Finance Minister Eelco Heinen informed parliament last month that this Cabinet plans to take the bank public or sell it to an investor. The reorganization is likely related to this planned privatization.

The bank is also facing rising costs and necessary investments in data quality and IT systems, which is putting pressure on its income.

“The transformation is initiating fundamental changes that should lead to an agile, cost-efficient bank that focuses on people and society where the customer relationship is paramount,” said De Volkskbank CEO Roland Boekhout.

One of those changes is that De Volksbank wants to bundle its four banking brands - SNS, ASN Bank, Regiobank, and BLG Wonen - into one. “It must be a brand that distinguishes itself as a sympathetic challenger in the Dutch market,” Boekhout said. “A bank with an eye for people and society, close to our customers.” More details will be announced later this year.

The Volkskbank’s central works council still has to weigh in on the reorganization, so the plans are not set in stone yet. Boekhout said they decided to announce the plans before they were fully developed to give employees and customers clarity about what is going on.