ING to cut 7,000 jobs, CEO quits

ING is to cut its worldwide workforce by 7,000 after booking a loss of €1bn over 2008, the financial services group said on Monday.

The bank also said in a statement that the Dutch government is to guarantee some 80% of its risky US mortgage portfolio, which totals some €27.7bn.
Michel Tilmant will also step down as CEO and will be replaced by supervisory board chairman Jan Hommen, who is a former Philips CFO, ING said.
ING said the job losses, equivalent to 5.4% of its worldwide workforce, will cut costs by €1bn.
Head office spending is also to reduced, internet banking service ING Direct will not be launched in Japan and the bank is reconsidering its sponsorship of Formula 1 racing, according to news agency Reuters.
‘Naturally, I am disappointed with our results in this extremely tough environment,’ said Hommen in the statement. ‘We sincerely regret the impact that some of the measures we are announcing today will have on our colleagues, but these steps are essential to adapt our organisation to the new business environment.’
ING received a €10bn capital injection from the Dutch government last year.

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