ANGLO IRISH Bank’s plans to cut its workforce by 27 per cent by the end of next year as part of a wider move to wind down its operations by 2020.
Staff were told yesterday morning that the bank, which now also incorporates Irish Nationwide, wants to cut up to 350 jobs out of a workforce of 1,280.
This will bring to at least 3,450 the number of redundancies at the main State-supported, Irish-owned banks by the end of 2012.
AIB plans to cut more than 2,000 jobs, while Bank of Ireland is about half-way through a reduction of 750. Permanent TSB plans to cut its workforce by 350.
The Irish Bank Officials Association (IBOA) has predicted that by the end of next year, 6,000 full-time jobs will have been lost in the wider banking sector here since the global financial crash in late 2008.
Anglo’s plan announced yesterday includes up to 130 redundancies in the Republic. The bank begins a 30-day consultation process with staff representatives today.
It said it hoped to achieve the job cuts via a voluntary redundancy scheme in Ireland and the UK, but didn’t rule out compulsory cuts.
It is not clear what redundancy terms will be offered to staff.
Larry Broderick, general secretary of the IBOA, called on Anglo to pay the industry norm, which has been six weeks per year of service plus statutory payments, up to a maximum of 130 weeks.
Anglo’s last redundancy round, in early 2010, paid four weeks per year of service up to a maximum of 52 weeks.
A spokeswoman for the Department of Finance said the Government was committed to putting the banking system on a “more sustainable basis”, focused on the needs of the economy.
“The State will ensure that all staff are treated fairly, whether they remain with the institutions or not.”
The job cuts are likely to involve the outsourcing of certain functions, possibly including IT and human resources.
These will be the first tranche of job cuts as Anglo moves towards wind-down. Anglo and Irish Nationwide are operating under the Irish Bank Resolution Corporation name since their merger was approved earlier this year.
Under plans to gradually stop operating, Anglo will wind down its various loan books over the next decade and sell off its Irish wealth-management division.
It is in the process of selling its US loan book – having received first round bids from a number of interested parties – and plans to offload its wealth management arm in Ireland, which employs about 40 staff.
The failed State-owned bank is also targeting the orderly wind-down of its UK commercial loan book over the next five years, with the sale of any residual loans after that point.
“This is considered to be the optimal solution based on UK market conditions,” Anglo said.
In addition, the bank plans to run down its commercial and residential loan books in Ireland over a period of up to 10 years.
The bank said it would continue to service its loans with the National Asset Management Agency as per its agreement with the State body.
Anglo has operations in Dublin, Galway, Limerick, Waterford, Belfast, London, Manchester, New York and Boston. This includes the Irish Nationwide head office in Dublin.
* It emerged separately yesterday that Irish Nationwide chief executive Gerry McGinn has been appointed by AIB to run its First Trust division in the North.
Mr McGinn has headed Irish Nationwide for the past two years.
A graduate of Queen’s University Belfast and native of Co Antrim, Mr McGinn was previously chief executive of Bank of Ireland’s Banking UK division.
