Anglo Irish Bank is to seek 110 voluntary redundancies in Ireland this year and a further 110 in 2010, it was revealed tonight.
In a webcast to staff, chief executive Mike Aynsley said the bank was seeking to cut about 110 jobs in its Irish operations, 95 in the UK and 25 in the US.
In a statement, the bank said the cuts will bring its total workforce to about 1,300, a cut of 470 from its September 2008 baseline of nearly 1,800 staff.
It said the sale of its Vienna-based operation, natural attrition and the transfer of staff to the Nama unit represent about half of the reduction, with today's redundancy programme accounting for the remainder.
Anglo said the redundancies "are a result of the planned reduction in the size of the bank due to necessary restructuring and the transfer of circa €28 billion of loans to Nama in the coming months".
Staff in Ireland and the UK are being offered four weeks pay for every year worked, up to a maximum of 52 weeks, on top of statutory entitlements. US-based staff are being offered two weeks pay per year of service to a maximum of 52 weeks pay.
The bank said it expects to introduce a second phase of job cuts by 2011. This will “be similar in scale to the first”, it said.
“This bank will undergo radical change in the coming months and today’s announcement is the first phase of a programme intended to reduce the cost base of the operation and improve efficiency,” Mr Aynsley said in a statement this evening. “Regrettably, we have to let people go as we reduce the size of the balance sheet and re-structure the bank. This reality is tough on our staff who have worked exceptionally hard and have shown huge commitment over the years, most particularly over the recent, difficult months.”
The redundancy package was negotiated between the management of the bank, which was nationalised by the Government in January, and the Department of Finance.