The special liquidator to the Irish Bank Resolution Corporatin, Kieran Wallace, has formally informed staff that all contracts of employment with the company are automatically terminated with immediate effect.
In an email, Mr Wallace said that their plan is to have an orderly wind-down of the business.
He said that during this time they plan to continue to manage the business as directed and effect the sale of the assets of the company.
A total of 1,031 workers will be affected by the liquidation of IBRC. 978 are direct employees of the bank with 809 employed in the Republic of Ireland, and 169 working in the UK.
A further 53 contractors are affected, with 52 of those working in the Republic and one in the UK.
Speaking in the Dáil last night, Finance Minister Michael Noonan said he regretted the abruptness of the way news of the liquidation was communicated to management and staff at IBRC.
But he said it was "necessary in the public interest" to keep the matter from the public domain until now.
He said the liquidator is poised to carry out his duties and has already taken over and secured IBRC premises in Ireland, London and New York.
The general secretary of the Irish Bank Officials Association, Larry Broderick, has said he is fearful for the future of the people employed by IBRC. Mr. Broderick said the staff at IBRC were being treated very badly.
Larry Broderick said there was no respect for the staff. He said they had been given a task to wind down the company and had agreed redundancy terms.
Mr Broderick said it was "galling" the manner in which IBRC staff were being treated and he said it not a good message to send out to the international community or to any company that was planning on investing in Ireland.
He said they had agreements with the Government in relation to the wind down of IBRC which provided for continuous employment until the bank was wound down.
Mr Broderick said it was "shocking" that the Government had not addressed the issue as part of the legislation and he said that the Government had terminated contracts and reneged on agreements.
He also said he was calling for a meeting with the Minister for Finance and the liquidator, KPMG.