IE
The 230 redundancies confirmed by Anglo Irish Bank today has to rank among the least surprising announcements of recent times – even if final number of job losses does fall at the lower end of predictions. However, rather ominously, more are likely going forward.
Of the 230 job losses, 110 will be in Ireland, while 95 fall on the UK operations and 25 in the US. The bank also says that the sale of its Vienna-based operations, natural attrition and the transfer of staff to NAMA makes up half of this number. Total headcount will fall to 1,300.
Anglo’s CEO Mike Aynsley has reiterated the point that the redundancies will be voluntary, but warned that if insufficient numbers stepped forward it would consider the compulsory route. As we’ve stated previously, Irish financial services workers are not keen to opt for voluntary redundancy.
The bank is, of course, engaged in an ongoing restructuring programme, and is likely to shrink significantly in the near future. And while the 230 job cuts might seem relatively light (some anticipated up to 500), more redundancies are on the cards.
Aynsley said: “This bank will undergo radical change in the coming months and today’s announcement is the first phase of a programme intended to reduce to cost base of the operation and improve efficiency.”
“Regrettably, we have to let people go as we reduce the size of the balance sheet and restructure the bank,” he added.
Should you choose to opt for voluntary redundancy, the offer on the table is four weeks’ pay per year of service, plus statutory requirements, up to a maximum of 52 weeks’ pay.
The “redundancies” are not voluntary in the US, and the laid off staff will inequitably receive a severance of less than half of their voluntary Irish peers. A slap in the face for the US loan operations which are in far superior shape compared to the dismal Irish loan book.
While Ned’s comments are true, the package for US staff is in line with US market practices. The US staff will more than likely walk into jobs elsewhere with the US jobs market in much better shape than the Irish.
Sounds like Brian is management material. More self-serving rationalizations from the criminally inept management that created the mess for which everyone else is paying. You can be sure that the management has taken care of themselves handsomely, and continue to do so.
Mike Aynsley wrestles with crocodiles….Krikey Mate got me a big one this time!
This is a failed bank that will be run down, everyone is on borrowed time in Anglo and no one externally will shed any tears – the anglo culture created this mess.
It is only a matter of time before Anglo is wound down and it deserves to be. It always amazes me how Anglo staff seem to be unaware of the anger people feel towards the bank and the damage it has done to Irelands reputation and yet no-one has yet taken any responsibility for their actions. Criminal proceedings should be taken against several individuals in Anglo.