Monday 20 November 2017

Thousands of jobs are facing the axe

Breda Heffernan

Breda Heffernan

FEARS for thousands of banking jobs were raised last night as crisis-hit lenders prepare to slash their costs in a critical week for the financial sector.

The Irish Bank Officials' Association (IBOA) insisted cutting staff would be a "short-sighted, knee-jerk response" as it warned major jobs cuts were being considered by some institutions. It previously estimated as many as 10,000 banking jobs were at risk in 2010.

This comes in the wake of large scale lay-offs, including, most recently, 750 job losses at Bank of Scotland Ireland.

"Even though over 6,000 redundancies have either already taken place or have been agreed in the financial services sector in the 18 months since the banking crisis began, there is a serious concern that further major cuts in staff numbers are again being contemplated in some areas," IBOA general secretary Larry Broderick warned.

As the first tranche of impaired development loans are transferred to NAMA this week, Finance Minister Brian Lenihan will today outline further capitalisation of the banks and the possible consolidation of the sector.

This comes as the institutions receiving state support engage in negotiations with the EU Commission on a viability plan that will set the terms for the provision of that assistance.

The IBOA said 4,000 jobs had already been lost in the sector since late 2008.

Irish Independent

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