Dutch bank ING will cut back its marketing activity around Formula One during 2009, after which the activity will be ‘reviewed’.
ING made the announcement after revealing it is expecting to make a €1 billion loss in 2009 due to the global financial crisis, reports the Autosport.com website. The review of Formula One sponsorship activities is part of a wider cost-cutting programme which includes the laying off of around 7,000 staff.
Autosport reports that ING said in a statement, “ING will cut operating expenses by €1 billion in 2009. The structural expense reduction will lead to annual savings of approximately €1.1 billion from 2010 onwards. Of the cutback, 35% will come from a reduction of the workforce by approximately 7,000 full-time positions in 2009.
“The remainder of the expense reduction comes from decreasing costs for our head office, marketing, the Formula One programme, consultancy, third-party staff and the renegotiating of certain contracts with IT-vendors. Of the total expense reduction, €650 million will be realized in Banking and €350 million in Insurance.”
ING is title sponsor of the Renault team, and bought trackside advertising and was title sponsor of the Australian, Hungarian, and Belgian Grands Prix last year. The company will sponsor the same Grands Prix this year, with the addition of the Turkey Grand Prix.
