Anglo job losses may rise to over 700

THE number of job cuts at Anglo Irish Bank could hit 700 as it begins the first phase of its redundancy programme.

The bank will cut 230 jobs initially with 110 jobs to go in Ireland, 95 in Britain and 25 in the US and Europe.

Over the last year 240 jobs have been lost and these latest cuts will reduce staff numbers from 1,800 to 1,300. The second phase of the redundancy programme will likely see reductions of similar scale to the first.

The bank said the redundancies are a result of the planned reduction in its size due to “necessary restructuring and the transfer of around €28 billion of loans to NAMA in the coming months”.

Staff members were informed of the terms and conditions of the programme in briefings yesterday.

The programme, which is initially seeking redundancies on a voluntary basis, will begin on Monday and run until February next year.

In Ireland and Britain, staff are being offered four weeks pay per year of service, plus statutory entitlement, to a maximum of 52 weeks pay. In the US, two weeks pay per year of service to a maximum of 52 weeks pay is being offered.

Chief executive of Anglo, Mike Aynsley said the bank will undergo “radical change” in the coming months and this announcement is the first phase of a programme intended to reduce the 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 re-structure the bank. This reality is tough on our staff who have worked exceptionally hard and have shown huge commitment over the years.

“We will ensure that people are well informed, supported and are treated with dignity and respect. Our mandate, as a nationalised bank, is to keep the public interest to the fore and the restructuring of new Anglo Bank will reflect this objective,” he said.

In a statement Anglo said that the first phase of the programme is to address surplus capacity in the bank and subsequent work will focus on centralisation and automation initiatives that flow from the restructuring plan to be submitted to the EU at end November.

“While the redundancy programme will aim to achieve a staged reduction of headcount during the course of 2010, subsequent reductions will be framed against a detailed review of structures, processes and IT systems build, likely to occur over the course of 2010 and 2011,” it said.

The redundancy package was negotiated between the management of the bank, which was nationalised by the Government in January, and the Department of Finance.

The bank said it has put in place initiatives designed to inform and support staff as they consider their options.