Feeds

IT staff set for chop in Barclays-ABN Amro merger

'Synergies' mean job cuts in double dutch

Secure remote control for conventional and virtual desktops

The proposed £45.6bn merger of Barclays and ABN Amro banks will result in at least 23,000 job cuts, with the IT departments looking most vulnerable.

IT union Amicus was reassured by the firms that the job cuts would not likely be compulsory. They were expected to come from natural attrition, which at about 10 per cent equated roughly with the number of proposed cuts over three years. Ten thousand new jobs are expected to be created over the same period.

The combined Anglo-Dutch bank will be based from Amsterdam, which will mean the closure of the UK as a world-wide headquarters.

Keith Brookes, Amicus National Official, said: "It's not going to be slash and burn as far as I can see," but he conceded that it was expected that certain functions would be moved to lower-cost, overseas locations.

"Key areas of concern for me are the London head office, and I'm anxious to find out what the plans are for IT because there's bound to be plans for that," he said, adding that he was also concerned about call-centres being offshored.

Rijkman Groenink, chairman of the managing board of ABN Amro, said at a press conference: "If you look at the plans and the integration of the various departments, we do not expect out of that 23,000 that a significant part will come from the Netherlands," but would give no further detail.

There are thought to be abour 6,000 IT and related support staff at Barclays and eight to twelve major call centres. Roughly 1,500 IT jobs had already been outsourced to Accenture, while 500 had already gone to Xansa.

John Varley, chief executive of Barclays Group, told the conference: "The career opportunities in ABN Amro and Barclays will be second to none...we will be magnet for talent...that's really the employment story for today."

On the "philosophy" of the merger, Varley said: "What we want we want to say to our shareholders is that the efficiency ratios business area by business area compare with the best in the world"

The merger was expected to save the pair £3.5bn over the three years of removing duplicated departments and offshoring. The group will serve 47 million customers in Europe, North and South America, Asia, Middle East and Africa.

ABN Amro, meanwhile, has agreed the sale of LaSalle Bank Corporation to Bank of America Corp for $21bn. €12bn from the sale will be given to shareholders.®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.