Holland's biggest bank, ABN Amro, announced plans to cut about 900 North American jobs by the middle of 2007 to reduce costs amid growing competition.
The cuts, equal to 5 per cent of the North American work force, will be across nearly all areas of the bank and
at all major locations, Amsterdam-based ABN Amro said. They follow a 6 per cent decline in third-quarter profit.
"It's part of an effort for us to focus," spokesman Shawn Platt said. "Competition is tough."
Most cuts will be in the United States and Canada, and employees learned of the plans earlier yesterday, Platt said. It was not clear how many jobs might be eliminated by attrition.
ABN Amro has slashed several thousand jobs since 2003 but struggled to keep costs down. Though third-quarter profit totalled €1.14 billion ($2.12 billion), expenses jumped 16 per cent while revenue rose just 13 per cent.
Many banks in the United States face intensifying competition as consumer borrowing slows. With long-term interest rates near short-term rates, it has become tougher for banks to charge enough on loans to offset their rising borrowing costs.
ABN Amro's cuts may be felt particularly in Chicago and New York, where several operations are concentrated.
ABN subsidiary LaSalle Bank, which has US$71.4 billion ($101.2 billion) of assets, is the No 2 bank by deposit market share in the Chicago area, trailing JPMorgan Chase, Federal Deposit Insurance data show.
New York, meanwhile, is home to ABN Amro's US corporate and institutional banking unit.
Chief financial officer Hugh Scott-Barrett in October said the bank might divest some businesses within six to 12 months.
Published reports have said ABN Amro may sell all or part of its US mortgage unit as lending declines.
In 2005, ABN Amro decided to outsource much of its computer work, eliminating 3500 jobs, including 1500 through layoffs.
ABN Amro shares closed down 5c at €24.67 in Amsterdam trading.
- REUTERS
