Rabobank Groep, fined 774 million euros ($1.06 billion) last year for rigging interest rates, said it may cut an additional 2,000 jobs at its Dutch operations as part of a plan to reduce expenses by 220 million euros by 2016.
The bank will reduce headcount by between 1,000 and 2,000 positions at Rabobank Nederland and at the Dutch arm of the company’s international operations, where there are currently 11,500 employees, the company said in a statement posted on its website yesterday.
Rabobank Groep is tightening controls over its operations since last year’s fine. The Dutch cooperative lender in December said it would centralize risk management for financial markets and commercial banking. The lender plans to combine the Dutch arm of its international operations with Rabobank Nederland, it said today.
“I’m convinced that the central organization can be better, faster and smarter,” Ralf Dekker, chief executive officer of Rabobank Nederland, said in the statement.
Rabobank last year said it is also revising its cooperative banking model to reduce costs and ensure better compliance with regulations, including documenting mortgage lending. The number of independent local banks that form the cooperative will be reduced to about 100 from 136 amid increased compliance and regulation, Rabobank said.
The job reductions come on top of the 8,000 Rabobank earlier unveiled at its Dutch consumer bank, which currently employs 28,000.