Friday 24 February 2017

MBNA plans to cut its Irish workforce after talks with staff

Credit card firm employs 1,700

Anne-Marie Walsh Industry Correspondent

CREDIT card giant MBNA revealed yesterday that it is "likely" to cut its 1,700 strong workforce in Ireland later this year. It is to enter talks with staff representatives on the issue of where the axe will fall.

The Bank of America-owned lender, which is based in Carrick-on-Shannon in Co Leitrim, said it wanted to minimise redundancies during a forthcoming restructuring of the business.

The company said it was "opening a forum" with staff in order to discuss potential job cuts.

However, so far there has been no indication from MBNA as to whether any redundancies will be voluntary or compulsory.

"There is likely to be some reduction, but it will be a modest reduction," a spokesperson said.

It was also revealed yesterday that 21 jobs are being cut at Shannon-based insurance company St Andrew's.

The announcement by St Andrew's was made after its parent, Lloyds Banking Group, said it was pulling out of the payment-protection insurance market.

The Fine Gael spokesperson on small business, John Perry, who is based in Sligo, said job losses in MBNA would have a huge effect on the northwest region in the wake of recent job losses at the Quinn Group in Cavan.

"MBNA is a huge employer and any job losses would be a blow to the region," he said.

"In recent times, it has been the only company that gave meaningful employment in the region and any announcement would have a major impact."

Restructuring

He said consumers' lack of confidence in the economy was obviously having a direct impact on the jobs at the credit card firm.

Meanwhile, Merrion Capital Group, a securities firm that is part-owned by the New York-based Allen and Co, is cutting about a third of its workforce as part of a restructuring programme.

It will result in up to 25 job losses -- but further losses have not been ruled out.

Departing executives and staff will receive €245 per share held in the group, giving an overall value on Merrion of about €30m, according to reports.

Merrion Capital's corporate financiers have acted as an advisor on transactions worth more than €17bn, according to the company's website.

Clients have included Aer Lingus and Eircom.

Officials at the company declined to comment on the job losses.

Irish Independent

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