Business Irish

Tuesday 23 January 2018

Bank sought 230 job cuts as staff rush for the exit

Joe Brennan

Anglo's redundancy programme, targeting 230 people, is understood to have been over- subscribed as it closed yesterday to applicants -- even though its terms are well below those on offer by other banks shedding staff.

The group's new chief executive Mike Aynsley said last November, as he unveiled the job cuts, that Anglo had already lost 240 of the nearly 1,800 employees who were on its books in September 2008 -- mainly by natural attrition.

Anglo warned that a similar-sized second wave of redundancies was likely over the course of this year and next, after the group carries out a detailed review of its "structures, processes and IT systems".

The group, which is seeking to get a radical restructuring plan past the European Commission, has offered employees in Ireland just four weeks' pay for every year of service, plus statutory entitlement, capped at a maximum of one year's pay.

By comparison, Ulster Bank's redundancy package for 1,000 staff last year offered up to eight weeks' pay for every year worked. Permanent TSB is targeting 120 staff with a scheme that offers 7.25 weeks per year, capped at two-and-three-quarter years.


Meanwhile, the IBOA finance union is fighting Danish-owned National Irish Bank's severance proposal of six weeks' wages for every year of service, subject to an overall cap of two years' salary.

Sources have also said that a number of top Anglo executives who signalled recently that they were leaving the bank as part of a sweeping change at the top, were departing under the terms of the current voluntary redundancy package.

Ex-chief financial officer Matt Moran; former head of Anglo's wealth management division, Peter Butler; and Pat Whelan, who was the head of lending in Ireland, all announced their departures last year.

Anglo is close to signing off on the appointment of Dutch banker Maarten van Eden as its new chief financial officer. This will complete the process of filling the 10 positions on its new interim management team.

All told, Mr Aynsley has brought in five outsiders to his team, including three fellow alumni of the National Australia Bank (NAB), where he worked for much of the 1990s.

Anglo's new head of financial markets, Jim Bradley; its head of corporate development, Tom Hunersen; and head of balance sheet management, Robert Cameron, all worked for NAB in the past.

Sources suggest Mr Aynsley is seeking to surround himself by a trusted team of people he knows personally or by reputation as he looks to overhaul the group.

Irish Independent

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