Permanent TSB is expected to cut up to 350 jobs from its workforce.

The bank's chief executive David Guinane confirmed thebank will seek voluntary redundancies as part of "a plan to secure the future of Permanent TSB" and return the lender to profitability.

About 20 per cent of the 1,900-strong workforce is expected to be cut.

It is understood management and staff will be briefed on the company's plans over the coming days and that the job cuts will be voluntary.

Trade unions Unite confirmed this afternoon that it has been in contact with senior management at Permanent TSB today over future restructuring.

Unite's regional co-ordinator Walter Cullen said the union hoped to issue a statement tomorrow.

“Until we have an opportunity to communicate and consult with our members it would not be fair to them to comment on today’s speculation about the company,” he said.

Permanent TSB is also expected to announce an interest rate increase within days, with reports that the lender is planning a 1 per cent increase.

The company said no decision had been made on the timing or the scale of any mortgage rate increases.

Fine Gael's enterprise spokesman Richard Bruton said the news was "yet another result of bad economic policies pursued in banking over the past seven years".

"Permanent TSB was this country’s biggest mortgage lender and is therefore suffering the consequences of the unsustainable property bubble."

Labour's enterprise spokesman Willie Penrose said his thoughts were with those workers who may lose their jobs.

"With over 400,000 people on the Live Register, those workers expected to lose their jobs are yet again the victims of the Fianna Fáil botched banking policy," he said.

Mr Penrose said the reported rate increase would also put more pressure on families struggling with mortgage repayments.