I know we are the midst of a recession but how many more people will have to lose their jobs and sacrafice the things that are near and dear to them just to survive. Permanent TSB is planning to cut between 250 and 350 jobs. The cuts will apparently be voluntary and some people will be re-employed eventually but is that really good enough? Who in their right mind would volunteer to leave their job in this economic climate even if it would improve their chances of being re-employed by the bank in the future. This is a huge loss and many people will be affected, not just the employees themselves but also their dependants. The announcement was made yesterday after a week of speculation.
The bank has also announced an increase in its standard variable mortgage rate. Full details on this cost-cutting move have still not been released with not even the staff being kept in the loop. Not that this minor detail worries them much at this point as they wait to see whos’ head will be the first on the chopping block. Are the dole queues not long enough already?
The bank currently employs 1800 people across their 100 branches country wide. Hired consultants Accenture examined costs of TSB and discovered that it lost €131m in the first half of last year. While i understand this would lead to job losses why are they only starting now when the country is in such disarray? I can’t comprehend how raising the price in their mortgages and laying off nearly twenty per cent of their staff can help their business to recover. In my opinion their business can’t recover until the country does and increasing the line at the dole office certainly isn’t the way to go about it.