The EBS building society is to cut a further 200 staff from its workforce and convert its 14 remaining branches in the Republic into franchise operations.

The subsidiary of Allied Irish Banks said the redundancies would be sought on a voluntary basis with the job cuts falling equally between the institution's head office in Dublin and its branch network.

The move is part of the overall AIB voluntary severance scheme, announced last year, which is aimed at reducing the group’s headcount by 2,500.

“The AIB’s voluntary severance scheme has been ongoing since the announcement and rolled out on a phased basis, according to business needs and capacity,” a spokeswoman said.

“As part of this phased programme across the Group, some EBS staff are now in scope to apply for voluntary severance,” she added.

The plan will also see the last 14 remaining EBS branches converted to tied agents operating under the EBS franchise. The building society currently has 82 offices in the Republic, made up of 14 branches and 68 tied agents.

The EBS has now reduced its workforce from 800 to 400 since the financial crash.

Staff at the organisation’s head office were told of the impending job cuts at a meeting with management this afternoon.

The Unite trade union, which represents workers at the building society, said the move by EBS was “ripping the heart out of what was once an institution of the people.”

“The EBS have yet to resolve issues arising out of the takeover by AIB in 2010,” said Unite’s Colm Quinlan.

“They are pressing ahead though with savage cuts that will end the relationship it has with customers, many of whom are having to deal with distressed mortgages and are reliant on the human contact that drew them to the EBS in the first place.”