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AIB freezes hiring and promoting to curb expenses

Seen & Heard: union expresses disappointment at lender’s latest cost-cutting plan

Personnel costs were the main contributor to AIB’s higher expenses, growing 8 per cent or €29 million between January and June over the same period in 2018, because of wage inflation and a higher headcount.

Sun Aug 25 2019 - 14:30

AIB has imposed an embargo on recruitment and promotion for its 9,800 staff as the State-controlled lender moves to keep a lid on costs, according to a report in The Sunday Times. The move follows mounting concerns after AIB reported a 6 per cent increase in operating expenses in the first half of 2019. Costs fell by 3 per cent at rival Bank of Ireland during the same period.

Personnel costs were the main contributor to AIB's higher expenses, growing 8 per cent or €29 million between January and June over the same period in 2018, because of wage inflation and a higher headcount. The report said AIB chief executive Colin Hunt identified cost containment as a key priority when announcing the interim results.

The bank informed the Financial Services Union (FSU) last week. In a circular to members, the FSU indicated the move was unexpected and expressed its disappointment.

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