ACC Bank is to cut 200 jobs and close 16 branches around the country and has blamed the global financial crisis, the sharp deterioration in the Irish economy and collapse of the property market for the move.
The lender to small and medium-sized businesses and the agricultural sector, which is owned by Dutch financial services provider Rabobank, will close branches between October and next April and said it also plans to "restructure other roles".
"We are in volatile times with global financial systems in a period of radical change, and the broader Irish economy unlikely to recover for at least another two years," chief executive Rob Hartog said in a statement.
"These measures reflect the need to prioritise where we use our skilled resources at this time, and our anticipation that 2009/2010 will continue to be difficult," Mr Hartog said.
The company said it is seeking to reduce costs by a minimum of 30 per cent over the next year with the job losses and branch closures phased over that period.
ACC said it will offer a severance package and the first employees will leave in July.
The branches which will not close will be located at Cork, Dublin, Drogheda, Galway, Kilkenny, Limerick, Mullingar, Sligo, and Waterford.
Customers at one of the 16 branches due to close will be able to do their banking through the above.
ACCBank is part of the Rabobank Group and employs 660 people here.
Among the branches due to close are: Athlone, Ballina, Castlebar, Cavan, Clonmel, Ennis, Dungarvan, Letterkenny, Monaghan, Navan, Nenagh, Roscommon, Tralee, Tuam, Tullamore, and Wexford.
Siptu expressed grave concern at the bank’s plan and called on management to work with it.
The union said it would seek to minimise the number of redundancies. “Our aim is to preserve as many jobs as possible, as well as the ensuring the underlying viability and future of the Bank.”