Bank of Ireland jobs under threat in cost-cutting bid

More than 1,000 jobs are likely to be lost as part of Bank of Ireland’s ongoing cost-cutting efforts.

The bank employs just under 13,400 people. While this figure is down by fewer than 400 on this time last year, the company has shrunk its staff levels by 3,700 since the start of 2009. Earlier this year management warned that more redundancies than the initial 750 target announced in the summer of 2010 would likely be needed.

Financial workers’ union, the IBOA, recently said it feared that a further 600 jobs could be lost at Bank of Ireland.

However, that full figure is likely to be higher than 1,000. Already, about 350 of the initial 750 targeted cuts have been realised. At yesterday’s publication of the bank’s half-year results — which showed a rise in first-half losses from €556m to €1.25bn — chief executive Richie Boucher declined to discuss employment figures, but stressed the need to lower staff costs, despite the loss of jobs.

Mr Boucher did note, however, that the number of further job losses would be significant and that the company is in the middle of a process of seeking voluntary redundancies across its various units.

It was recently reported that a small number of redundancies were being sought in the bank’s life insurance division Bank of Ireland Life.

However, Mr Boucher said that branch closures are not part of the bank’s overall restructuring plan — noting that as well as updated card products and mobile banking initiatives, customers still want access to bank branches and want to deal face-to-face with bank employees regarding certain products like mortgages and business loans.

He said that well-run, efficient branches, which offer good products can help boost the bank’s overall revenues.

Mr Boucher added that interest rate movements on its products would largely be driven by the bank’s success in trying to reduce its cost of funding, which remains very high.

“We have to reflect that in what we charge our customers. If we can reduce that cost we don’t have to reflect that in what we charge, but we have to take initiatives to take that cost down,” he said.