The Bank of Ireland said it is to shed 2,100 jobs over the next four years in an attempt to cut €120 million in annual costs.
In a statement this morning, the bank said it is aiming to save about €30 million in fiscal year 2005/06, €75 million the following year, and €105 million in 2007/08 from the cost reductions.
The revamp will cost about €210 million, of which €115 million will be reflected in the 2005/06 accounts. A further €40 million will be spent on technology upgrade as part of the programme.
The General Secretary of Irish Bank Officials Association (IBOA) Larry Broderick criticised management at the bank over the proposed job losses saying it was a "slap in the face" to staff.
"It's a very sad reflection on a bank which has made an enormous contribution to Irish society that it now wants to maximize short term shareholder value at the expense of staff", Mr Broderick said.
"There is no strategic vision in Bank of Ireland, the vision is one of slash and cut".
He said the IBOA would be putting in place a very strong resistance campaign.
Regarding industrial action, Mr Broderick said the IBOA "wouldn't rule anything out".
Officials from the IBOA are due to meet management tomorrow to discuss the proposed cuts.
The Bank today unveiled the plans alongside a trading statement that gave an upbeat view of the bank's performance. It expects profit before tax and exceptional items for the year to March 2005 to rise by 5 per cent, translating to a 7% growth in alternative earnings per share.
The bank said growth in profit and EPS should accelerate to 10 per cent and 9 per cent, respectively, for the year if the impact of the group's investment in the UK Post Office Financial Services is excluded.
The group said it is "comfortable" with the market consensus of 113 cent in alternative EPS for the year, up from 106.7 cents previously.
The earnings outlook excludes a special release from general loan loss provisions of €100 million following a review of the bank's balance sheet.
Group lending volumes have risen by 16 per cent, with mortgage lending in Ireland expected to be up 26 per cent, and in the United Kingdom up 9 per cent. Business banking lending is seen to have increased by 22 per cent.
Net Interest income has risen by 9 per cent; net interest margin has fallen by 20 basis points, reflecting the UK mortgage back book re-pricing, the change in funding mix and the low interest rate environment.
It also expects non-interest income to grow 2 per cent this year.
Total costs, including the investment in the UK Post office Financial Services, are expected to show an increase of 9 per cent year-on-year.
BoI also confirmed that it received "expressions of interest" for its Bristol & West branch network. Alliance & Leicester is among the parties rumoured to be interested in buying Bristol & West.