Bank of Ireland to reduce workforce over next three years

Bank of Ireland is embarking on an efficiency drive, which is set to reduce its workforce over the next three years.

This announcement comes after the bank posted a pre-tax profit of €1.86bn ($1.99bn) for 2024, a decline of 4.2% from 2023.

Despite the move to cut workforce, the number of branches is expected to remain stable at around 182.

Its chief executive Myles O’Grady stated that while there is no specific “headcount target,” the bank aims to achieve efficiency savings in the face of inflationary pressures.

O’Grady was quoted by Irish Examiner as saying: “We’ve got to deliver efficiency savings and certainly target a more leaner organisation.”

He anticipates that full-time employment levels will be lower in three years. The bank currently employs over 11,000 people.

The bank’s cost base is projected to average out at €2bn a year over the next three years, according to O’Grady.

An estimated restructuring charge of between €110m and €125m is expected, which may include redundancy packages.

O’Grady said that portion of the restructuring costs will be a “level of redundancy”.

“Not so much a very structured bank wide scheme, but certainly where it’s appropriate to deploy it, we will.”

Bank of Ireland is also looking to “consolidate” its third-party supplier expenses as part of its efficiency measures.

O’Grady stated that these initiatives are aimed at “future proofing Bank of Ireland into the longer term.”

The bank’s financial results for 2024 show that the value of its loan book increased by €3.2bn to €82.5bn due to a €2.1bn rise in mortgages, €800m in small and medium sized enterprise as well as corporate lending.

In January this year, Bank of Ireland UK announced its plans to invest £100m ($124m) over the coming three years to enhance its banking products and services.