Friday 27 April 2018

Ulster Bank plans to lay off hundreds of employees

Charlie Weston, Personal Finance Editor

The drastic action is part of a new cost-cutting measure, which has caught staff completely by surprise.

ULSTER Bank is to lay off hundreds of workers and close large numbers of branches. The new cost-cutting plan for the bank has caught staff and unions completely by surprise.

Bank boss Jim Brown revealed today that between 1,400 and 1,800 staff would go by 2016. The bank recently laid off close to 1,000 workers.

And up to 40 more branches are to close on the island.

Ulster Bank is currently in the process of closing 22 branches. General secretary of the IBOA union, Larry Broderick, responded angrily to the surprise revelation by the bank.

He said the bank’s announcement had come as a bolt from the blue – without prior consultation with employees or negotiation with the union.

The new cost-cutting at the bank comes just weeks after the British chancellor has raised the possibility of selling Ulster Bank’s assets.

George Osborne said he has ordered an urgent review, to report in the autumn, into the possibility of breaking up RBS into a “good bank” and a “bad bank”, to separate out toxic assets and risky loans from parts of the business which support the economy.

The review will particularly focus on assets in Ulster Bank and UK commercial real estate, and will not involve any further injection of taxpayer money into RBS.

Ulster Bank now plans to get back to making profits by 2016.

Online Editors

Business Newsletter

Read the leading stories from the world of Business.

Also in Business