IE
More redundancies to come, as Anglo Irish Bank confirms 230 cuts
5 November 2009
The 230 redundancies confirmed by Anglo Irish Bank today has to rank among the least surprising announcements of recent times – even if final number of job losses does fall at the lower end of predictions. However, rather ominously, more are likely going forward.
Of the 230 job losses, 110 will be in Ireland, while 95 fall on the UK operations and 25 in the US. The bank also says that the sale of its Vienna-based operations, natural attrition and the transfer of staff to NAMA makes up half of this number. Total headcount will fall to 1,300.
Anglo's CEO Mike Aynsley has reiterated the point that the redundancies will be voluntary, but warned that if insufficient numbers stepped forward it would consider the compulsory route. As we've stated previously, Irish financial services workers are not keen to opt for voluntary redundancy.
The bank is, of course, engaged in an ongoing restructuring programme, and is likely to shrink significantly in the near future. And while the 230 job cuts might seem relatively light (some anticipated up to 500), more redundancies are on the cards.
Aynsley said: "This bank will undergo radical change in the coming months and today's announcement is the first phase of a programme intended to reduce to cost base of the operation and improve efficiency."
"Regrettably, we have to let people go as we reduce the size of the balance sheet and restructure the bank," he added.
Should you choose to opt for voluntary redundancy, the offer on the table is four weeks' pay per year of service, plus statutory requirements, up to a maximum of 52 weeks' pay.
The "redundancies" are not voluntary in the US, and the laid off staff will inequitably receive a severance of less than half of their voluntary Irish peers. A slap in the face for the US loan operations which are in far superior shape compared to the dismal Irish loan book.
Ned Devine 05 Nov 2009
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