Dutch bank ABN Amro and Fortis Bank Netherlands, which were bought by the Dutch state last year, are to cut up to 5,000 jobs over the next three years as the two businesses are merged. Some of ABN Amro’s international private banking operations are also to be rebranded.

An ABN Amro spokesperson said that between 5,000 to 6,500 jobs are expected to go, but added that around 1,500 new roles will be created. When asked where the axe would fall, the spokesperson told WealthBriefing that the cuts would mainly affect retail and support roles, but it was too soon to say if other functions – such as private banking – would be affected.

The reduction in headcount is intended to create cost savings of up to €1.3 billion ($1.8 billion) by 2012, the spokesperson said. ABN Amro currently has 20,000 staff, while Fortis Bank Netherlands has 10,000 employees.

ABN Amro also said that its private banking activities in the Netherlands, Curacao and Guernsey will be rebranded ABN Amro Mees Pierson, while in most other countries the existing name ABN Amro Private Banking will continue to be used. The Debrueck Bethmann Maffei and Neuflize OBC brands will be retained in Germany and France respectively.

The Dutch government bought Fortis’ Dutch banking and insurance units, along with its stake in ABN Amro, last October for €16.8 billion. The Dutch state’s interest in ABN Amro includes the Netherlands business unit, private clients and the international diamond and jewellery group.

It is understood that the Dutch government plans to combine Fortis Bank Netherlands and ABN Amro and then sell the unified entity. In March, former Dutch finance minister Gerrit Zalm, who has been parachuted in to run the new group, said the unified bank might be sold through a combination of public and private share sales, while Fortis’ insurance unit, ASR Nederland, will be sold off separately.