NIB Cuts Jobs As Branches Close

The National Irish Bank has announced plans to axe 150 jobs and close 25 branches of its 58 branches.

The cuts represent a quarter of the Danish-owned bank's 634-strong workforce, while the branch closures are likely to affect mainly rural towns.

The cuts are part of a restructuring plan, which will begin next year and is due to be completed during 2011 on a phased basis.

The cuts are expected to come through voluntary redundancies, with two-thirds coming from the branch network and the remainder from across the bank.

The redundancy scheme offers staff six weeks salary per year of service and is capped at two years' salary.

A statement issued by NIB said that Ireland's banking sector was "on life-support". The statement said: "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."

Announcing the plans, NIB Chief Executive Andrew Healy reaffirmed the continued commitment of the bank's parent, Danske Bank Group, to the Irish market.

Healy said: "Customers can be reassured by the fact that National Irish Bank 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."

Mr Healy also described the restructuring move as a "prudent" one in the current economic downturn, saying that the bank was "one of the first to recognise the true scale of losses facing banks operating in Ireland". He said: "This latest proactive decision signals its resolve to continue fulfilling the banking needs of its extensive Irish customer base."

The bank confirmed that it is working with the IBOA and other staff representative bodies regarding the changes and details of the scheme.

(KMcA/BMcc)