APG, the Netherlands’ largest pension administrator, will cut between 1,000 and 1,200 jobs in the coming years to lower costs, streamline operations and strengthen its competitive position ahead of a major overhaul of the Dutch pension system.

Chief executive Annette Mosman said in a statement on Wednesday that APG must become “faster and more efficient” to remain competitive. Automation, AI and standardisation are expected to play a major role in reaching the company’s goals.

APG currently administers eight funds, including majority shareholder civil service pension fund ABP which is one of the biggest funds in the world. “In the coming years, the transition to the renewed pension system will be the main focus; after that, APG will open its pension services to new clients,” the company said. 

The restructuring will affect all parts of the organisation, including pension administration, asset management and support services. A portion of the reductions will be achieved through not filling vacancies.

White collar union De Unie said the announcement came as a shock. “This will affect one in every three people,” spokesman Joop Voesten told the Financieele Dagblad.

“It is especially tough because maximum effort is being demanded during the transition to the new pension system… The coming years will be very uncertain.”

The overhaul comes as the sector prepares for the new pension system under the Future Pensions Act, which requires all funds to transition by January 1, 2028.