Holland’s ING Group, in a move to trim costs and to further integrate its Aetna and ReliaStar acquisitions, announced further restructuring of U.S. operations, including the projected loss of some 1600 jobs, 15 percent of its U.S. workforce.
ING hopes to save between $250 million and $300 million a year when the restructuring is completed. Recent growth in the company’s U.S. life insurance units haven’t been sufficient to offset weakness in its banking and financial operations.
No details of the job cuts have been announced, but the company indicated it expected to pay out between $75 million and $100 million in severance payments.
ING also announced the appointment of Tom McInerney to the Executive Board of ING Americas, effective immediately. He will succeed John Turner, former Chairman and CEO of ReliaStar, who will retire at the end of the year. McInerney formerly headed Aetna Financial Services, and took over the position of CEO of ING US Financial Services following the acquisition of the Aetna financial unit last year.