Record losses to lead to job cuts at Allied Irish Banks
People in European finance jobs may be interested to hear that Allied Irish Banks (AIB) is expecting to cut up to 2,000 jobs as a result of posting record losses.
The institution, which was once the largest lender in the country, but is now almost 93 per cent owed by the taxpayer, said it needs to restructure itself following a net loss of over €10 billion (£8.8 billion) last year.
Recent stress tests performed as part of the European Union and International Monetary fund's bailout of the nation showed that the bank will have to raise €13.3 billion to become stable again.
The job cuts will take place on a phased basis through 2011 and 2012, with most redundancies expected to be on a voluntary basis.
Under plans to shrink Ireland's troubled banking system, AIB is expected to be one of two "pillar banks" that will remain from the six major players in the market prior to the country's financial collapse.
This week, a report in the UK by the Independent Banking Commission stated that financial institutions must reform to protect themselves against any future downturns in the market.