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.

PA

Suggested Topics
Start your day with The Independent, sign up for daily news emails
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K YR1: SThree: At SThree, we like to be dif...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is a mul...

Guru Careers: C# Project Team Lead

£55 - 65k (DOE): Guru Careers: A unique opportunity for a permanent C# Develop...

Guru Careers: Graduate Editor / Editorial Assistant

£16 - 20k: Guru Careers: A Graduate Editor / Editorial Assistant is needed to ...

Day In a Page

Blundering Tony Blair quits as Middle East peace envoy – only Israel will miss him

Blundering Blair quits as Middle East peace envoy – only Israel will miss him

For Arabs – and for Britons who lost their loved ones in his shambolic war in Iraq – his appointment was an insult, says Robert Fisk
Fifa corruption arrests: All hail the Feds for riding to football's rescue

Fifa corruption arrests

All hail the Feds for riding to football's rescue, says Ian Herbert
Isis in Syria: The Kurdish enclave still resisting the tyranny of President Assad and militant fighters

The Kurdish enclave still resisting the tyranny of Assad and Isis

In Syrian Kurdish cantons along the Turkish border, the progressive aims of the 2011 uprising are being enacted despite the war. Patrick Cockburn returns to Amuda
How I survived Cambodia's Killing Fields: Acclaimed surgeon SreyRam Kuy celebrates her mother's determination to escape the US

How I survived Cambodia's Killing Fields

Acclaimed surgeon SreyRam Kuy celebrates her mother's determination to escape to the US
Stephen Mangan interview: From posh buffoon to pregnant dad, the actor has quite a range

How Stephen Mangan got his range

Posh buffoon, hapless writer, pregnant dad - Mangan is certainly a versatile actor
The ZX Spectrum has been crowd-funded back into play - with some 21st-century tweaks

The ZX Spectrum is back

The ZX Spectrum was the original - and for some players, still the best. David Crookes meets the fans who've kept the games' flames lit
Grace of Monaco film panned: even the screenwriter pours scorn on biopic starring Nicole Kidman

Even the screenwriter pours scorn on Grace of Monaco biopic

The critics had a field day after last year's premiere, but the savaging goes on
Menstrual Hygiene Day: The strange ideas people used to believe about periods

Menstrual Hygiene Day: The strange ideas people once had about periods

If one was missed, vomiting blood was seen as a viable alternative
The best work perks: From free travel cards to making dreams come true (really)

The quirks of work perks

From free travel cards to making dreams come true (really)
Is bridge the latest twee pastime to get hip?

Is bridge becoming hip?

The number of young players has trebled in the past year. Gillian Orr discovers if this old game has new tricks
Long author-lists on research papers are threatening the academic work system

The rise of 'hyperauthorship'

Now that academic papers are written by thousands (yes, thousands) of contributors, it's getting hard to tell workers from shirkers
The rise of Lego Clubs: How toys are helping children struggling with social interaction to build better relationships

The rise of Lego Clubs

How toys are helping children struggling with social interaction to build better relationships
5 best running glasses

On your marks: 5 best running glasses

Whether you’re pounding pavements, parks or hill passes, keep your eyes protected in all weathers
Joe Root: 'Ben Stokes gives everything – he’s rubbing off on us all'

'Ben Stokes gives everything – he’s rubbing off on us all'

Joe Root says the England dressing room is a happy place again – and Stokes is the catalyst
Raif Badawi: Wife pleads for fresh EU help as Saudi blogger's health worsens

Please save my husband

As the health of blogger Raif Badawi worsens in prison, his wife urges EU governments to put pressure on the Saudi Arabian royal family to allow her husband to join his family in Canada