EMCC European Monitoring Centre on Change

AIB

Company/Organisation:
AIB

Geographic Location

Country: Ireland
Location of affected unit(s): Nationwide

Company

Sector: Financial services
Financial and insurance activities
64 - Financial service activities, except insurance and pension funding
Number Employed: 9520

Employment Effects

Announcement Date: 06-03-2020
Planned Job Reductions min: 1500
Planned Job Reductions max: 1550
Type of Restructuring: Internal restructuring
Employment Effect Start: 06-03-2020
Foreseen End Date: 31-12-2022
Direct Dismissals: 1500

Additional Information

Allied Irish Bank (AIB) is seeking to reduce its workforce by one quarter by the end of 2022. On 6 March 2020, the Bank signalled it is planning around 1,500 job cuts, which would bring its total workforce to below 8,000 in three years. The forthcoming redundancies will be pursued through retirement schemes, voluntary redundancy, and people pursuing careers elsewhere. 

The Bank's CEO said the reductions were needed as the work intensity decreased in some core bank services, such as mortgage arrears.

AIB's profit before tax dropped by 60% to €499 million, largely because of €300 million for 'additional provisions to meet potential further liabilities', such as the Bank's involvement in the tracker mortgage controversy, according to the representatives. 

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