Business Irish

Monday 21 August 2017

Anglo Irish poised to cut staff numbers ahead of bank being split

Emmet Oliver

Anglo Irish Bank looks set to reduce its staff again as managers have been asked to find ways of cutting costs ahead of the bank being split in two, the Irish Independent has learnt.

Section heads at the bank, where 1,253 people are employed, have been asked to assess their "current resources" in the light of the proposed split.

Yesterday the bank declined to comment on the kind of job losses that are likely to result from its division into a recovery bank and a funding bank, which is due to happen in the first half of next year.

But as the recovery bank, in particular, is ultimately to be wound down, the bank is unlikely to need anything close to its current resources. AIB is also pondering large-scale job losses, sources indicate.

However, staff at Anglo have become aware of the request to pinpoint potential cost savings and it is understood some are upset at the way the bank has handled the issue.

Decisions

Sources at the bank said no decisions had yet been taken and it was important to engage in a planning process ahead of such a major move.

Staff are awaiting a further announcement with close interest being paid to what terms of redundancy the bank offers.

Some are concerned there will be no voluntary redundancy, but this would go against long-standing practice in the Irish banking sector, even during the recession.

The last set of Anglo results disclosed that it had 92 people working in its NAMA unit, while 393 people had left the bank up to the end of June 2010.

Anglo is also benefiting from natural wastage as key staff are not replaced.

The Anglo recovery bank will manage a loan book of about €38bn, while the funding bank will take in deposits and sit on other assets like NAMA bonds.

Irish Independent

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