Hibernian seeks to cut 180 jobs

HIBERNIAN Group, one of the country's largest and most successful financial organisations, is seeking to cut its 1,400 strong workforce by 180 over the next 18 months.

The shock decision, which is being conveyed to its substantial network of outlets nationwide, has been taken following a detailed cost review over the past number of months.

The company is hoping that as many as 100 of the 180 employees to be made redundant will opt to take early retirement with the remainder accepting a voluntary redundancy package. The outcome of the cost review was outlined to the AMICUS trade union yesterday and will be the subject of further detailed negotiations.

It is understood that the review has also identified opportunities for further efficiencies throughout a reduction of no-staff related costs.

In a communique yesterday to its various agents around the country, Hibernian spokesman Dick O'Driscoll said the insurance industry in Ireland has changed dramatically in the last year and it is essential that the Hibernian Group responds to that change. Mr O'Driscoll said that while the company's results this year are excellent, they need to deliver strong results in the future.

"There is a demand for improved efficiency, both from our customers and our shareholders," says the O'Driscoll communique.

"Hibernian has already pursued this drive for efficiency by introducing new product initiatives and by taking advantage of new technologies in order to drive down costs.

"In order to maintain our market leadership we need to continue to improve efficiency."

Mr O'Driscoll has acknowledged that this is a difficult time for everyone in Hibernian. He said Hibernian does not underestimate the impact the layoffs and changes will have on their staff.

The Hibernian Group's wide range of activities embrace general insurance, risk management, pensions, life assurance, investment management, and personal financial services.

Hibernian is part of the Aviva Group, which is one of the world's largest insurance organisations, with a formidable presence in more than 50 countries and funds of over €300 billion.

One of the leading Hibernian Group agents in Waterford has, however, expressed deep shock at the announcement of the impending job losses.

"It has come like a bolt from the blue," he said, adding that it won't go down at all well at a time when the company remains in handsome profitability.