Bank of Ireland halfway through cutting 750 jobs

BANK of Ireland is in the process of shedding further jobs having announced last July it intended to axe 750 jobs over two years.

Last night a spokeswoman said the bank was about “halfway through that process” and said it was unlikely to announce any major moves on jobs in the near future. However, the bank has already shed 2,500 jobs in the 18 months to September 2009.

That was done by winding up businesses in Britain and by not replacing staff who retired or resigned.

Bank of Ireland, which is fighting to stay out of Government ownership, employs about 14,000 at present. That figure that will fall closer to 13,000 once the 750 jobs have been removed under the latest job shedding programme.

The bank is continuing to sell off parts of its business and recently completed the sale of Bank of Ireland Asset Management in its drive to meet the tougher guidelines laid down for the Irish banks by the Government and the financial authorities in Ireland and Europe.

Bank of Ireland is battling on to avoid state ownership by selling further assets and to raise sufficient funds to achieve that end.

The state owns 36% of the bank but could face full state ownership before the year is out since the Financial Regulator recently imposed more stringent capital ratios to be met by the Irish banks.

Since the crisis hit in September 2008 the financial sector has lost almost 7,000 jobs, according to Larry Broderick, the head of IBOA, the finance union.

Between them AIB and Bank of Ireland have shed about 3,300 jobs, but most of those resulted from non replacement of those who retired or left early.

AIB’s 2,000-plus jobs set to go following yesterday’s announcement will push the total figure lost by the banking sector in Ireland close to 10,000.

The ongoing sale of assets will see the transfer of further jobs out of the Bank of Ireland in the months ahead, though that figure is not likely to amount to more than 200.