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Allied Irish Banks said it plans to reduce its workforce by 1,500 by 2023 and merge several branches across the country.
“By 2023, the bank expects to employ 1,500 fewer people due to a combination of normal retirements, natural departures and voluntary layoffs,” AIB said in a statement.
The downsizing was first announced earlier this year, but was suspended due to the pandemic. “The bank is confirming that in early 2021 it will reopen its voluntary severance program that was stopped in March 2020.”
AIB also plans to close its Patrick’s Street branch in Cork, moving its operations and services to 66 South Mall. Similar mergers will see the closure of the Eyre Square branch merging with Lynch’s Castle in Galway. In Dublin, AIB’s Westmoreland Street operations will relocate to its Dame Street branch; the Crumlin Cross branch to Crumlin Road and 52 Baggot Street to 1-4 Baggot Street.
However, the timing of today’s announcement has been criticized by the Financial Services Union (FSU), who said the layoff program should be postponed.
“We are still in the middle of a global pandemic. No major announcements about job cuts should be made at this stage, particularly by a bank that is partly owned by the Irish government, “said John O’Connell, FSU Secretary General.
The FSU ruled out any possibility of mandatory layoffs and said there had been minimal compromise between the bank and the FSU regarding the plan.
“There will have to be an immediate significant commitment from the Bank. Management must provide the evidence to support its claim of the fewer staff requirement, while demonstrating that the remaining staff will not be overloaded, “O’Connell added.
AIB said the branch merger was due to the rapid acceleration of digital banking due to Covid-19. They said they have seen a 27% increase in daily digital use among customers over 65 and a 9% increase in digital adoption among those over 40.
AIB CEO Colin Hunt said the plan has been influenced by the accelerating effect of Covid-19 on customer preference for digital banking.
“Our increased focus on cost control, the pursuit of new growth opportunities and our investment in digital innovation will enhance the range of financial products and services for our clients, while generating value for our shareholders and placing the bank in a even stronger foundation to meet the challenges that lie ahead, ” he said.
Since the outbreak of the pandemic, 80% of AIB’s workforce has been working from home. The bank said that in light of the effectiveness of remote work, they have reassessed their future Dublin head office requirements.
AIB earlier this week completed the departure of its former Bankcentre headquarters, Ballsbridge and will leave the adjacent facility at Hume House on December 31. It is planning to vacate another three of the remaining six Dublin head office locations as the leases are renewed over the next few years.
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