Allied Irish Banks axing 2,500 jobs
Allied Irish Banks has confirmed it is laying off 2,500 workers - 500 more than it originally signalled.
After leaders of the bank workers' union met AIB executives and Department of Finance officials, the bank said it would be seeking half of the redundancies this year.
AIB chief executive David Duffy said the bank was aiming for voluntary lay-offs and a fair severance package.
"We aim to implement a severance package that is fair to people at all levels in the bank, while reflecting the very difficult financial position that AIB is in and the huge taxpayer support on which we continue to rely," Mr Duffy said.
"I am confident that AIB will achieve sustainable profitability with a reduced cost base essential to delivering this recovery."
The Irish Bank Officials Association said talks would open with AIB senior management next week.
Larry Broderick, IBOA general secretary, said the scale of the cuts again shows ordinary bank workers suffer the consequences of mismanagement.
"This continuing haemorrhage of jobs in the financial sector shows no signs of abating," the IBOA leader said.
"We need a realistic strategy to strengthen existing employment and create alternative opportunities."
The aim of the job losses is to cut costs by 170 million euro in a full year.
AIB said full details on the redundancy programme will be announced in early April.
It is understood bank chiefs are under pressure from Government to ensure pay-off arrangements do not exceed packages already offered to Health Service Executive workers this year - three weeks' pay for every year of service on top of two weeks' statutory redundancy.
The bank confirmed it was working within Government rules and wanted a speedy conclusion.
"The programme forms an important part of AIB's return to sustainable profitability, allowing the bank to focus on its customers and support Ireland's economic recovery," the bank said.
AIB is the latest big bank to slash its workforce in Ireland after Bank of Scotland (Ireland) announced in 2010 it was pulling out of the country and Ulster Bank announced 950 redundancies in January.
AIB, which first announced a planned 2,000 redundancies last April, is effectively under State control, although it has narrowly avoided nationalisation.
It has received a bailout of 20.7 billion euro (£17.3 billion) when monies poured into its subsidiary, EBS, are also included.
Taoiseach Enda Kenny said the announcement of the job losses was a difficult day for workers but added he hoped they could find a future in Dublin's IFSC as it aims for 10,000 new jobs over five years.
"I would hope that some numbers of those who worked in AIB would be able to gravitate to that sector," he said.
"Insofar as the Government are involved, obviously it's a difficult day for anyone to say I'm not going to have a job over whatever period."
The Taoiseach said Government departments would be ready to stand by affected workers.
- 1 Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
- 2 Christians: The world's most persecuted people
- 3 The secret report that helps Israelis to hide facts
- 4 Danish TV reporter is all business up top, all party down below
- 5 Denmark bans kosher and halal slaughter as minister says ‘animal rights come before religion’
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Israel-Gaza conflict: The children were playing in the street with toy guns. The air strikes were tragically real
Danish TV reporter is all business up top, all party down below
Syria conflict: Syrian and Turkish Kurds unite to battle Isis threat - ‘We shoot them like sheep, but next day double the number return’
Ross Burden dead: MasterChef and Ready Steady Cook star, dies aged 45
The secret report that helps Israelis to hide facts
A day in the life of Vladimir Putin: The dictator in his labyrinth
Were 'Poor Doors' added to mixed developments so wealthy residents don't have to go in alongside social housing tenants?
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Opponents of Israel's military operation in Gaza are the real enemies of Middle Eastern peace
iJobs Money & Business
Data Governance Manager (Solvency II) – Contract – Up to £450 daily rate, 6 month (may go Permanent)
£350 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...
£500 - £560 per day: Orgtel: Java Developer FX - Banking - London - Up to £560...
£350 - £400 per day + competitive: Orgtel: My client, a leading bank, is curre...
£26000 - £30000 per annum + Benefits: Ashdown Group: Account Manager - (Produc...