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AIB Plans 150 Voluntary Redundancies Despite Record Profits

AIB Bank Belfast

AIB has announced plans for 150 voluntary redundancies over the next three years amid significant profits driven by higher interest rates. 

The Irish bank's three-year strategy focuses on "further greening of our loan book and delivering greater operational efficiency." 

AIB stated the redundancies would occur in areas where increased efficiency and automation are possible, or where fewer staffers are needed due to the resolution of legacy issues.

Billy Barrett, Senior Industrial Relations Officer with the Financial Services Union (FSU), said staffing levels at AIB are already at a “crisis point.”

He said further reductions “will only result in increased anxiety for remaining staff.”

FSU General Secretary John O’Connell criticised the redundancy plans as “short-sighted” and driven solely by profit margins. 

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He said: “If we continue to let individual banks manage the future of our banking services we will be left with a continual withdrawal of banking services which will result in consumers and businesses suffering the consequences.

“Continually cutting costs and staff is a short-sighted approach to managing the challenges facing the retail banking sector.”

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Last year, AIB reported an after-tax profit of €2 billion, significantly higher than the €765 million recorded in 2022. 

The bank benefited from the high interest rate environment. 

Following this substantial profit, AIB pledged to distribute €1.7 billion to shareholders, including €700 million in cash dividends. 

The Irish Government still holds 32.6 percent of AIB’s shares.

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