Some 20 or 30 branches will be "amalgamated" and subsequent job losses occur as Irish TSB Bank is streamlined to become Permanent TSB, its new owner's chief executive, Mr David Went, said yesterday. The existing 160 branches will be cut to 110 or 120 in an amalgamation package costing between #20 million (£15.75 million) and #25 million.
The TSB Bank, whose majority shareholder was the Irish government, was acquired by Irish Life & Permanent (IL&P) on April 20th for #430 million.
Mr Went expected to reduce TSB's cost base by about 10 per cent or #18 million through the reduction of branches, job cuts and consolidation of head office functions.
Amalgamation plans for Irish Permanent with TSB hit choppy waters immediately after the takeover when Irish Permanent's 1,336 staff rejected a proposal to harmonise their terms and working conditions with TSB's employees. This means the merged bank will have two sets of employee working conditions, including working hours.
Mr Went said group-level trading year-to-date was satisfactory and demand for the group's products remained strong despite a slowdown in the economy. He said the planned introduction of Permanent TSB into the marketplace in early 2002 would give the group a strong branch network and he anticipated an exciting time ahead.
