Permanent TSB (PTSB) to Cut Around 300 Jobs Under Voluntary Redundancy Scheme

Permanent TSB (PTSB) has announced plans to reduce its workforce by approximately 300 employees throughout 2025 after receiving a strong response to its voluntary redundancy scheme. The scheme, which was launched two months ago, has been heavily oversubscribed, according to sources familiar with the matter.

A spokesperson for the bank confirmed on Friday that Permanent TSB will facilitate the departure of around 300 employees on a phased basis next year. “Following receipt of applications to its voluntary severance scheme, the bank envisages that it could accommodate around 300 employees from across the bank, exiting on a phased basis over 2025,” the spokesperson stated.

The redundancy process will be carefully managed to ensure that customer service standards remain high. Employees who applied for the scheme will be informed of the outcome by the end of February.

No Further Redundancy Schemes Planned

Despite the high level of interest in the voluntary redundancy scheme, Permanent TSB has no plans to introduce additional programmes in the near future. However, the Financial Services Union (FSU) has raised concerns regarding the impact of job cuts on both employees and customers.

FSU Secretary General John O’Connell stated that the union will engage with the bank over the coming weeks to seek clarity on the decision-making process behind each redundancy. “We will be looking for the rationale for each role being made redundant, an assurance of no additional workload for remaining staff, and confirmation that there will be no mandatory transfers as a result,” he said.

O’Connell also questioned the potential consequences of staffing reductions on customer service, asking whether service levels would remain consistent despite fewer employees.

Redundancy Terms and Compensation

PTSB’s redundancy package follows the bank’s long-standing policy. Employees can choose from the following options:

• Four weeks’ basic salary per year of service, plus statutory redundancy entitlements of two weeks.
• Five weeks’ salary per year of service, inclusive of statutory entitlements.
• A lump sum of 20 weeks’ salary, plus statutory entitlements.

Redundancy payments are capped at the lower of 2.5 years’ salary or €300,000.

Financial Pressures and Workforce Adjustment

PTSB’s workforce has expanded significantly in recent years, growing by 850 employees to 3,240 full-time equivalents as of June 2024. Much of this increase was due to the absorption of former Ulster Bank staff and the retention of temporary contract workers amid a surge in customer numbers.

However, the bank’s cost base is significantly higher than its competitors. In 2023, PTSB’s total income per employee stood at approximately €219,000, compared to €420,000 for Bank of Ireland and €465,000 for AIB. The average across Western European banks is just under €400,000, according to management consulting firm Kearney.

PTSB’s operating expenses accounted for 66% of its income in 2024, well above the 39% at AIB and 42% at Bank of Ireland. While PTSB initially aimed to reduce this ratio to 55% in 2025, it later revised its target to 60% by 2026.

With the European Central Bank (ECB) implementing interest rate cuts faster than anticipated, analysts suggest that achieving this revised target will require additional cost-cutting measures.