Bank of Ireland seeks to cut 1,400 jobs through voluntary redundancy programme 1 year ago

Bank of Ireland seeks to cut 1,400 jobs through voluntary redundancy programme

The news comes after the bank reported pre-tax losses of €669 million for the first six months of the year.

Bank of Ireland has announced that is seeking to cut 1,400 jobs as part of a voluntary redundancy programme.

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The bank is seeking to lower staff numbers from approximately 10,400 to around 9,000 on the back of pre-tax losses of €669 million for the first six months of 2020.

In a statement to JOE, a Bank of Ireland spokesperson said: “We have launched a Groupwide voluntary redundancy programme to colleagues this morning.

“Into the medium term, we anticipate a headcount of fewer than 9,000 within the Group from our current position of under 10,400, and the voluntary redundancy programme will be an element of that reduction.”

A large portion of the pre-tax losses, Bank of Ireland says, is due to €937 million being put aside to cover losses caused by loan repayment breaks in the wake of the impact of Covid-19.

In an interim report on the first six months of 2020, Bank of Ireland Group Chief Executive Francesca McDonagh said that Covid-19 had a “material impact on financial performance”.

McDonagh added that the bank expects further economic recovery in 2020 and that it is well positioned to “manage remaining uncertainties, including Covid-19 and Brexit”.

“We have strong capital, funding and liquidity while asset quality remains robust, and we have a proven track record of working with our customers to find sustainable solutions,” McDonagh said.

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“We are taking actions now to ensure the Group is well positioned to deliver improved and enhanced performance post Covid-19, including further cost reduction below current targets, ongoing digital transformation, and a further restructuring of our UK business to improve returns.

“We are committed to responsibly developing our long term franchises, and to serve our customers brilliantly in a way that delivers attractive, sustainable returns to our shareholders.”