The Financial Services Union (FSU) has called PTSB’s plans to slash jobs “reckless and damaging,” estimating the lender plans to cull about 500 positions.
PTSB said on Tuesday it would open a redundancy scheme that could see hundreds of staff leave in an effort to cuts its cost base.
The bank has not said how many staff it is targeting to let go, but “it is understood that up to 500 staff will be let go with 100 in IT, 200 in retail and a further 200 across the organisation,” the union said in a statement.
PTSB dismissed the union’s claim as speculative and unhelpful.
The bank’s shares were little changed in Dublin at €1.49, giving the it a market capitalisation €806.6 million. The shares are down almost 13 per cent for the year to date, in contrast to AIB and Bank of Ireland which are both up on the year.
The proposed cuts have “nothing to do with protecting and enhancing banking services. It is all about profit margins and reacting to commentary from market analysts,” FSU general secretary John O’Connell said.
“The regulator and Government need to wake up to the possible consequences of this announcement and ask serious questions about how PTSB are meeting the criteria set down by the Government in the banking review and the rules set by the regulator in relation to consumer protection.”
Mr O’Connell said the union is also seeking assurances from the bank that it will not be moving IT services elsewhere in a bid to cut costs.
PTSB’s costs are the highest among the three main Irish banks as a proportion to their income. Its running expenses equated to 66 per cent of income last year, well above the 39 per cent and 42 per cent posted by AIB and Bank of Ireland, respectively.
In a statement, PTSB said the claims in the FSU statement were without foundation.
“Speculation of this nature is not helpful to colleagues or customers. Once the voluntary scheme closes in January, an informed decision will be made on the number of colleagues that may be approved,” it said.
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