ING to revise IT contracts

Dutch bank will renegotiate supplier agreements and cut jobs to save more than £1bn

ING was hit by fourth-quarter losses of almost £2bn

Dutch bank ING is revising ongoing deals with IT suppliers and cutting 7,000 jobs worldwide to mitigate losses of €2bn (£1.87bn) during what it said was " the worst quarter for equity and credit markets in over half a century".

The restructuring plan aims to generate savings in "head office, marketing, the Formula 1 programme, consultancy, third-party staff and the renegotiating of certain contracts with IT vendors", the financial services firm said in a statement.

Some 7,000 full-time positions out of a workforce of 130,000 will also be shed as part of the action plan that aims to save around €1.1bn (£1.03bn) from 2010 onwards. The firm did not disclose a breakdown of areas and regions that will be affected.

Part of the changes at ING include the replacement of chief executive Michel Tilman by Jan Hommen, currently chairman of the supervisory board of ING Group, as macroeconomic developments have taken "a personal toll" on Tilman.

"With the continuing challenging outlook, we feel it is important to take additional action to decrease our risks and expenses," said Hommen.

"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."