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AIB expected to announce up to 2,500 job cuts

The increased redundancies may be to eliminate overlaps created by the takeover of EBS
The increased redundancies may be to eliminate overlaps created by the takeover of EBS

AIB is expected to announce redundancy proposals that could see as many as 2,500 people leave the bank.

The Department of Finance and the bank have declined to comment on reports that the number of redundancies will be 25% larger than the 2,000 originally expected.

News agency Bloomberg has reported the higher figures could be as a result of an attempt to eliminate an overlap created following the takeover of EBS.

The union representing bank staff, the Irish Bank Officials' Association, is seeking urgent meetings with both the Department of Finance and AIB senior management in light of the reports.

IBOA General Secretary Larry Broderick said the union is "unable to comment on the accuracy of the recent speculation since the bank has yet to provide us with details of its proposals.

''The union is, therefore, seeking these meetings in order to clarify the future direction of the bank and the likely implications of any change for staff and customers."

There is speculation that an announcement could be made this week.

An announcement is unlikely to go into the detail of the full terms of the redundancy package.

The Government was determined that any offer to bank staff would not exceed a recent HSE redundancy plan, which was three weeks' pay for every year of service, plus two weeks' statutory redundancy.

The final shape of a package at AIB is likely to be the subject of discussions with workers' representatives.