Bank of Ireland to Cut 2,000 Jobs in €100 Million Cost-Saving Plan

Strategic Insights -

Bank of Ireland is set to announce a significant workforce reduction, cutting approximately one-sixth of its 12,000-strong workforce in the Republic of Ireland. The move aims to save €100 million in costs, with most of the job losses expected to occur in the country. The bank will also explore the sale of its Bristol & West branch network, which has 100 branches and employs 1,000 people, serving 850,000 customers.

Key Takeaways:

  • Bank of Ireland plans to cut 2,000 jobs, approximately one-sixth of its 12,000-strong workforce in the Republic of Ireland, as part of a €100 million cost-saving plan.
  • The workforce reduction is expected to primarily affect the Irish Republic, where about 2,000 jobs are set to go.
  • The bank will explore the sale of its Bristol & West branch network, which has 100 branches, employs 1,000 people, and serves 850,000 customers.
  • The former building society was acquired by Bank of Ireland in a £600 million takeover deal six years ago.
  • Alliance & Leicester, a former building society, is among the banks that could be interested in acquiring the Bristol & West branch network.
  • The Irish Bank Officials Association, representing about 7,000 of the company's staff, has stated that it will not accept a plan to cut 2,000 jobs.
  • Bank of Ireland's chief executive, Brian Goggin, has stated intentions to cut costs, following 14 years of profit rises.
  • The bank generates profits of €373 million in Britain, primarily through mortgage offerings and commercial banking services, but its branch network is thought to only break even.

Statistics:

  • 2,000 jobs are expected to be cut in the Republic of Ireland as part of the cost-saving plan.
  • Approximately one-sixth of Bank of Ireland's 12,000-strong workforce in the Republic of Ireland will be affected.
  • €100 million is the expected savings from the workforce reduction.
  • 100 branches are part of the Bristol & West branch network.
  • 1,000 people are employed by the Bristol & West branch network.
  • 850,000 customers are served by the Bristol & West branch network.
  • €373 million is the profit generated by Bank of Ireland in Britain.
  • £600 million was the cost of Bank of Ireland's takeover deal for Bristol & West six years ago.

Sources:

  • The Times, 2005