Bank of Ireland to cut 750 jobs after EU approval | business | Hindustan Times
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Bank of Ireland to cut 750 jobs after EU approval

business Updated: Jul 16, 2010 19:03 IST

Reuters
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Bank of Ireland said on Friday that it would cut 5 per cent of its staff and maintain a pay freeze as part of the conditions for European Union approval of its restructuring plan earlier this week.

Ireland's biggest bank by market value received 3.5 billion euros ($4.45 billion) of capital and other state aid last year due to the credit crisis and the bursting of the Irish property bubble.

Bank of Ireland, which is 36 per cent owned by the state, pledged to sell assets and wind down some portfolios after receiving the approval and said the 750 job cuts, to be made on a voluntary basis, would be taken over the next two years.

The bank employs around 14,500 people, and a spokeswoman said it had already reduced staff numbers by 2,200 between March 2008 and December 2009.

Bank of Ireland last month completed its recapitalisation to plug a hole in its balance sheet after the discounted sale of risky property loans to Ireland's "bad bank".

The government, facing some of the euro zone's biggest fiscal and banking problems, wants Bank of Ireland to lead the way for its other troubled banks to rebuild their own capital levels.

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