Permanent TSB to cut 120 jobs

Permanent TSB is axing 120 jobs and closing 11 branches, it announced today.

Union leaders said they felt let down by the planned lay-offs after workers had agreed to other cost-cutting measures.

However, David Guinane, the bank’s chief executive, insisted they were needed and would be sought under a voluntary severance scheme.

“We’ve already taken a number of measures to address our cost base such as the incentivised career breaks for staff and we have already implemented significant reductions in our overhead spend,” he said.

“However it is clear that the short term outlook for new business levels has not improved and this is the next step in getting the bank fit for the new business environment we face.”

Employees will be offered just more than seven weeks salary for every year worked, up to a maximum of two years and nine months.

Some branches will be amalgamated with others in a move that will cut the bank’s outlets from 103 to 92.

The affected branches are to be notified in the coming week.

Trade union Unite, which represents 1,500 of the 2,500 workers at the Irish Life-owned bank, said it will meet bosses next week about the application process.

Regional officer Colm Quinlan said workers had already agreed to career breaks, a recruitment freeze and job changes to get through the banking crisis.

“We do feel let down and disappointed at this requirement to close branches with consequent redundancy, and inevitable disruption and redeployment for those members remaining with the organisation,” he said.