DutchNews.nl - 'ABN Amro job losses could reach 900'

'ABN Amro job losses could reach 900'

Friday 01 February 2008

Fortis has been given official permission by the Dutch central bank to split off ABN Amro's asset management activities and integrate the unit into its own. According to Friday’s Volkskrant, this will result in the loss of 900 jobs, almost double the 500 redundancies in earlier estimates.

The new asset management division will employ ‘over 2,000 people’. At present some 2,900 work for the asset management units of Amro Amro and Fortis, the paper says.

Personnel at ABN Amro are also disgruntled that seven of the 10 management jobs in the department will be appointed by Fortis, reports the Volkskrant.

In a statement on Thursday, Fortis CEO Jean-Paul Votron said: 'We're on track. This is a major step forward and a key milestone in the integration process of the ABN AMRO activities that will join us.'

Fortis said it hoped to complete the process by the end of the first quarter.

ABN Amro was taken over by a consortium of three banks at the end of last year. Fortis gets ABN Amro's Dutch retail, asset management and private banking activities.

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Other Institutions have perhaps already grabbed quality staff from ABN AMRO. Fortis will be better off chosing Management (specially middle management) from their own pool or from outside if they want to competetive. Its a pity that 900 (and more later) will lose their jobs. Fortis had moral, and perhaps legal requirement to rehabilitate these staff or offer them a good redundancy package.

By smartguy | February 1, 2008 1:54 PM

smartguy - There are no morals in this country. Did you read that they're showing Deep Throat on television next month?

By Tim Lee | February 1, 2008 3:09 PM

Tim Lee - what has Deep Throat to do with Management? Anyway, the aim of a merger is to expand business and to save on equipment and staff, or not?

By Occassionale | February 4, 2008 8:31 AM

As a former ABN employee in Risk, I believed the Barclays deal was better for staff and offered better synergies. However, the consortium deal was better shareholder value so the bloodbath was inevitable - many of the best staff have already joined other institutions

By Anon | February 8, 2008 12:13 PM

The problem is that Fortis does not have a strategy, apart from just being in charge. How else can one explain closing down 20 out of 23 departments at Asset Mgmt without one serious effort to keep good people. People are just being fired without being considered as potentially valuable assets. Of course you should get some overlap out, but you don't kick out your star players. Logically, most good people are leaving ABN AMRO or already left (many still have employment options). Anyway, headhunters like it. We are getting more calls from headhunters than from prospective clients. Fortis will also be history within two years. With a price / earnings ratio of 4.8 and no vision (just like under Groenink) Fortis' break up is just a matter of time. Supervisory Boards in the Netherlands just do not function anymore to correct these situations. Made up of old boys networks that lack real entrepreneurial spirit. A shame for Dutch aristocracy that allows this situation to continue. The Dutch government does not understand corporate politics since the 60s, so we shouldn't expect anything from them. The Dutch lack of leadership and vision is reflected by the lowest price / earnings ratio in the OECD (by far) for Dutch stocks. Perhaps something to consider for policy makers and supervisory board members.

By ABN AMRO employee about to resign | February 8, 2008 10:39 PM

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