Business And Leadership: NIB cuts 150 jobs, 25 branches to close

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NIB cuts 150 jobs, 25 branches to close

08.12.2009
National Irish Bank (NIB) has announced it is to cut 150 jobs and close about half of its branches over the next 18 months.

NIB said the restructuring was taking place against “the backdrop of continuing recession and sweeping changes to the financial services landscape in Ireland”

The redundancies will be voluntary, NIB said, with 25 of the bank’s 58 branches to be closed and merged into neighbouring branches.

Two-thirds of staff reductions will come from the branch network and the remainder from across the bank.

The voluntary severance scheme offers staff six weeks’ salary per year of service and is capped at two years’ salary.

A ‘prudent’ move
NIB Chief Executive Andrew Healy described the restructuring move as a “prudent” one in the economic downturn. NIB, he said, was one of the first to recognise the true scale of losses facing banks operating in Ireland.

“The banking sector in Ireland is on life support. Banks have to react by reducing costs and amending their business models. We are taking these actions to ensure we have a long-term future, a healthy future,” Healy said.

The bank’s restructuring programme will begin in 2010 and will be completed during 2011 on a phased basis.

NIB said it is working with the IBOA and other staff representative bodies regarding the changes and details of the voluntary redundancy scheme.

Danske committed to Ireland
Announcing the move, Healy also reaffirmed the continued commitment of NIB’s parent, Danske Bank Group, to the Irish market.

“Customers can be reassured by the fact that NIB is part of Danske Bank, a strong, well-capitalised European banking group that remains ambitious for its Irish business and has a long-term commitment to the Irish market. We will continue to service and support our customers,” Healy said.

NIB’s business and personal customers will continue to be fully covered under the Danish Government’s Bank Guarantee Scheme, Healy said.