Anglo Irish Bank has told staff it is planning to reduce its workforce by 350 by the end of next year. Around 130 of the cuts will be in the Republic of Ireland.
The bank currently employs 1,280, after the transfer of 280 staff from Irish Nationwide following their merger earlier this year.
Anglo held a series of meeting with staff earlier today to brief them on the plans, which are the result of a review of its operations. The plan provides for a wind-down of the bank by 2020.
It will now brief workers on the terms of a voluntary redundancy scheme, which must be approved by the Department of Finance.
It says there may be a need for compulsory lay-offs if its target is not reached. The bank adds that the planned sell-off of some businesses will also contribute to the targeted reduction in staff numbers.
It says no redundancies will take place until the consultation process has finished.
Earlier this year, Anglo's merger with Irish Nationwide was approved after EU and court approval. The new entity will be known as the Irish Bank Resolution Corporation (IBRC).
IBOA general secretary Larry Broderick said the union was disappointed, though not surprised, at today's news from Anglo Irish Bank.
'We will be seeking clarification of both the scope and rationale for the restructuring proposals,' he said.
'While we acknowledge that the bank has indicated its preference that redundancies should be implemented on a voluntary basis, IBOA will urge management to strengthen that commitment so as to avoid making any staff redundant on a compulsory basis given the current employment situation in the financial services sector,' he added.
He said that negotiations on other issues such as the level of the severance terms and the criteria for selection will also begin tomorrow.
Anglo CEO happy with US portfolio deal progress
Finance Minister Michael Noonan will be asked next week to endorse the winning bid or bidders for Anglo Irish Bank's $9.5 billion US commercial property loan portfolio, the chief executive of the bank said today.
Second-round bids for the portfolio - the largest to come up for sale in the US in recent years - are due on Tuesday after the opening round attracted interest from banks, private equity groups and other investors.
Making his first public comments on the sale, Mike Aynsley told Reuters today that he will ask Mr Noonan to okay the deal just two days later following meetings with advisors and approval by the nationalised bank's board.
'We will take our recommendation for approval by the board on the 25th of August and then take it up through the Department of Finance for endorsement by the minister,' Aynsley said.
He added that the bank was very happy with the way the process was going.
Private equity group Blackstone and distressed debt and equity investor Lone Star Funds are among the major bidders for the portfolio, sources have told Reuters.
A source familiar with the deal also said that private equity firm TPG Capital was no longer in the running.
Aynsley said he could not comment on the bidders because the bank was in the middle of the sale process. The portfolio has been broken up into eight separate pools to open it to smaller players, according to sources.
