ING Groep NV will move as many as 60 trading jobs from Amsterdam and Brussels to London as the biggest Dutch lender seeks to consolidate operations and cut costs, a person with knowledge of the plans said.
The company also plans to shut its equity derivatives business for financial institutions in New York, Singapore and Brussels, said the person, who declined to be identified as the plans were confidential.
ING is the first large European lender shifting staff to London after the UK decided to leave the EU in a June referendum. Other banks have signaled they might have to move jobs and operations abroad, with UBS Group AG chief executive officer Sergio Ermotti saying last month the Swiss lender might have to shift as many as 1,500 positions elsewhere.
While the future of London as a financial capital is in question after Brexit, the city remains home to a large pool of potential talent. ING might have to review the location in the future if the impact of Brexit is so severe as to affect its ability to draw employees or otherwise impacts the business and its clients, the person said.
ING plans to eliminate about 5,800 jobs in Belgium and the Netherlands to help speed up its digital transformation, the Amsterdam-based bank said on Monday last week. Those measures are expected to save about 900 million euros (US$989 million) a year.
Separately, Lloyds Banking Group PLC, Britain’s largest mortgage lender, is expected to eliminate about 1,340 jobs as part of a cost-cutting program that started in October 2014.
The move is part of a plan to pare about 12,000 roles by next year, the Accord labor union, which represents employees, said in a statement on Wednesday.
The job losses are within retail banking, operations, finance and risk, and customer products and marketing, and bring the cuts to about 8,680 so far. The lender, which employs about 74,117 in total, said it would create 110 new roles and seek to move some people to other positions.
“Where it is necessary for employees to leave the company, it will look to achieve this by offering voluntary redundancy,” Lloyds said in a statement. “Compulsory redundancies will always be a last resort.”
Chief executive officer Antonio Horta-Osorio deepened job cuts in July as he strives to offset evaporating income from lending amid record-low interest rates in the wake of the UK’s Brexit vote.
“We’re deeply concerned that both the scale and the pace of job reductions are increasing,” Accord general secretary Ged Nichols said in the statement. “This ‘death by a thousand cuts’ approach does nothing to give confidence to those who will be staying with the business.”
Meanwhile, Banca Nazionale del Lavoro SpA, the Italian unit of BNP Paribas SA, plans to eliminate 680 jobs and close 100 branches by 2020 as it expands its online and mobile services, people with knowledge of the discussions said.
The job cuts are to be carried out through early retirements, the people said.
The Rome-based lender has started talks with unions, they said.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB