Anglo Irish cuts staff numbers by 350
Published 17/08/2011 | 12:51
Anglo Irish Bank is planning to cut its workforce by 350 by the end of next year but has warned that compulsory lay-offs will be necessary if targets aren’t met.
About 130 of the cuts will be in the Republic in a plan that provides for the wind-down of the toxic institution, now known as the Irish Bank Resolution Corporation, by 2020.
The bank currently employs 1,280 following the transfer of 280 staff from Irish Nationwide through a merger earlier this year.
It added that the planned sell-off of some businesses will also contribute to the targeted reduction in staff numbers.
"It is the bank's intention to achieve this headcount reduction in a number of ways, namely via the disposal of certain businesses such as the US loan book and wealth management division, the completion of specific projects, and the implementation of redundancies across a number of categories of staff in Ireland and the UK," Anglo said in a statement.
The bank has completed a review of its operations, which has cemented a five-year deadline for the orderly wind-down of the UK commercial loan book.
Other key milestones include plans for a 10-year wind-down of the Irish commercial loan book but a five-year deadline is also being considered, depending on market conditions.
It is also aiming to close the book on Irish residential loans in five years.
Meanwhile, Gerry McGinn, chief executive of Irish Nationwide is leaving.
He will take head up Allied Irish Bank’s First Trust business in Northern Ireland.
Mr McGinn took charge of the failed lender two years ago.
(Additional reporting Press Association)