Dutch bank ING is renegotiating contracts with IT suppliers and cutting 7,000 jobs worldwide to offset fourth quarter pretax losses of €3.3 billion (£3.1 billion).
The bank has announced an expense reduction programme that aims to save around €1.1bn (£1.03bn) from 2010 onwards. Of the planned cutbacks, 35 per cent will come from a reduction of the workforce by approximately 7,000 full-time positions in 2009.
The Dutch financial giant will also be "renegotiating certain contracts with IT vendors" to slash costs. The remainder of the expense reduction plan would focus on decreasing costs in its head office, reducing its marketing costs, and scaling back its sponsorship of the Renault Formula 1 team, which Fernando Alonso drives for.
In what it described as "the worst quarter for equity and credit markets in over half a century", ING blamed writedowns on mortgage securities, debt and equities for its losses.
The bank also announced the departure of its chief executive Michel Tilmant. Tilmant will be replaced with Jan Hommen, current chairman, who said the bank would "take additional action to decrease our risks and expenses".
Hommen said: "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."