ING puts the brakes on advertising and F1 sponsorship

Financial Services

Fiona Ramsay

January 26, 2009

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ING puts the brakes on advertising and F1 sponsorship

LONDON - Dutch bank ING is pulling back on global marketing expenditure and is reassessing its sponsorship of the Renault Formula 1 team, as it attempts to cut its operating expenses by one billion euros this year.

A spokeswoman said marketing activity around Formula 1 would be cut back for the duration of the contract in 2009. The sponsorship activity will then be ‘reviewed'.

The company said 35% of its spending cuts will come from a reduction of the workforce by approximately 7,000 full-time positions, costing euros 450m in severance payments.

The company's chief executive Michel Tilmant is stepping down due to the financial crisis.

Head office, marketing and third-party staff costs will also be scaled back. ING would not confirm how many UK redundancies would be made.

ING expects to report a loss of one billion euros for the full year, with the fourth quarter ‘the worst quarter for equity and credit markets in over half a century'.

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