DUBLIN, Jan 13 (Reuters) - Bailed-out Irish lender AIB will meet staff on Tuesday morning to announce the outcome of a review of its IT services which could lead to hundreds of job cuts, the head of the Irish bank workers’ trade union said.
“We expect to hear that the bank has made a decision to outsource a substantial number of the IT jobs,” Larry Broderick, head of the IBOA union, told RTE radio. Irish media had reported that as many as 450 jobs could be cut.
Broderick added that any cuts were particularly concerning “at a time when AIB has come back into profitability and (employees have) made significant sacrifices to turn the bank around”.
A spokeswoman for AIB declined to comment on the potential job losses. “There’s an ongoing review of IT services of the bank as previously reported in October 2013,” the bank said in a statement.
“The review is being carried out in full consultation with the unions.”
Ireland’s Department of Finance, which oversaw a 21-billion-euro ($24.87 billion) bailout of AIB at the height of the Irish crisis, on Monday announced that it had appointed Goldman Sachs to advise on a sale of the bank and that it was confident it would recoup its full investment.
$1 = 0.8445 euros Reporting by Laura Noonan; editing by Jason Neely