Latest news with #jobcuts
Yahoo
an hour ago
- Business
- Yahoo
Microsoft's reported job cuts & OpenAI beef: What to know
Microsoft (MSFT) is reportedly planning to cut thousands of jobs, according to Bloomberg. Yahoo Finance Tech Editor Dan Howley outlines the latest, including how the tech giant's hefty artificial intelligence (AI) spending, notably its multibillion-dollar partnership with OpenAI ( could intensify the need to cut costs. This comes amid reported turmoil between Microsoft and OpenAI. The Wall Street Journal reports that the ChatGPT maker has considered pushing for an antitrust case against its partner, while the Financial Times reports that Microsoft is ready to walk away from the deal. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Microsoft is reportedly planning to cut thousands of jobs as part of the company's latest move to trim its workforce. Yahoo Finance's Dan Howley here with more on the story. So what are these cuts all about? And they come on the heels of cuts that the company's already been doing, right? Yeah, thousands of jobs, uh this is according to a Bloomberg report, are kind of up in the air at this point. Microsoft could start to announce the layoffs at the end of its fiscal year, which is coming up. Uh and yet, this comes after they left uh laid off thousands of workers uh earlier in in May. So it it's kind of a a recurring thing for Microsoft at this point where they continue to lay off uh workers every few months. They they say that it's part of uh their kind of right sizing, I guess, is the corporate parlance, uh or, you know, a means of making sure that they can be as dynamic as possible. Uh it it really, I think, comes down to making sure that uh they have uh the people that they want in the right places at the biggest positions of the company, which are at this point, AI and cloud. Uh and so, you know, don't forget they're also spending billions of dollars on their infrastructure build out on the cloud. So I think that's where a lot of uh of this is coming from. But you know, Microsoft isn't the only company that has gone through this where they've laid off workers, uh as a result of, as they see inefficiencies, or things along those lines. Uh Google had big layoffs. Meta had big layoffs. Uh and so, you know, it it seems to be uh this this kind of continuation of those layoffs going forward. Dan, while you're here, I want your take on another tech headline. What did you make of Sam Altman saying Meta was offering open AI staff I read this twice because I thought I misread this was $100 million bonuses. Look man, I'd lie. I would lie and be like, "Yeah, I work there. I I know I know Sam." Uh yeah, I mean, this is basically just, you know, their way of trying to catch up, right? Uh they're disappointed with the way that La 4 hasn't really lived up to their own expectations. They've had to push that back, that release back. Uh they have Scale AI now. Or they're you know, they they've put in was it $14.3 billion to get Scale AI. Uh this is a race to see who can get the most talent, the best talent, and beat the the kind of behemoth that is OpenAI still at this point, right? Now, that's not to say that, you know, other companies aren't aren't doing the same thing, or, you know, trying to poach people. $100 million is pretty rich. Um but you know, uh I do Well and and I don't know that we need to take him literally about one hundred He was saying this in a podcast, right? Even if it's a million dollars, even if it's $5 million, like the point is I'd still take it. The point is, is that the war for AI talent has become and and the irony of course, is that AI's going to replace a lot of jobs, but at the same time that it's creating this huge war for talent. I mean, then on the flip side you got the FT now reporting that Microsoft is talking about halting talks with OpenAI, if they can't come together on issues. Now maybe they're just putting out there that out there in order to put pressure on OpenAI. But again, it speaks to this sort of competitive competitiveness around all of these issues, right? Yeah. And and look, this this report comes out after a prior Wall Street Journal report saying that Microsoft, or OpenAI was willing to uh go the antitrust route, and make an antitrust complaint about Microsoft. So this is a back and forth, uh no love lost between uh the two at the moment. We reached out to Microsoft and OpenAI and we got a statement for Microsoft saying, you know, basically everything's hunky-dory there. You know, they're working together, uh you know, and they they like their relationship. Um but this this idea that Microsoft would be prepared to walk away, I mean, that's just the the the the talks right now, not away from OpenAI. Uh if they do walk away and they can't agree on anything with OpenAI as far as uh the restructuring goes, then OpenAI could lose out on $20 billion in funding from SoftBank. That's a big hit. Um and so, you know, this is kind of a a tightrope that both companies are walking at this point. Yeah. Right. Dan Howley, thank you, sir. Appreciate it. Hundred million dollar man.
Daily Mail
3 hours ago
- Business
- Daily Mail
Nike rival plots layoffs while assessing how to pay for US tariffs… as layoffs spread
A major Nike rival will axe 150 workers — and it may replace them with AI. Lululemon, the Canada-based athleisure brand known for its buttery-soft leggings and sweat-wicking men's shirts and pants, confirmed that it is eliminating roles on its support centre team. The affected employees handled customer service calls — including questions about online orders, return policies, and sizing options — as well as technical support for brick-and-mortar locations. 'As we continue to deliver on our strategy, we regularly assess our business operations to ensure we are well-positioned for the future,' a company spokesperson told 'Following a recent review, we have decided to evolve some aspects of our organizational structure to operate with more agility and further invest in our growth.' Independent retail analysts told CBC they believe the company will turn to AI to fill the gap. The company did not answer questions about its future AI policy. Lululemon's support centre roles are exactly the kind of formulaic, repeatable tasks that advanced computers are designed to handle. Independent retail analysts don't believe the job cuts indicate any issues for the brand. Still, under the hood, there are concerns. 'They are now struggling to generate growth in their core North American market,' Neil Saunders, a retail expert at GlobalData, told 'With costs rising, including from tariffs, Lululemon is gently pruning roles to keep costs in check.' The layoffs also come as the company reassesses its tariff strategy. A majority of Lululemon's products are made in Vietnam, Thailand, and Indonesia — countries that could face sweeping reciprocal tariffs if President Donald Trump reinstates them. In June, the company's CFO, Meghan Frank, admitted that the brand would need to raise prices to offset the levies. 'We are planning to take strategic price increases,' Frank said during the company's last earnings call. 'It will be price increases on a small portion of our assortment, and they will be modest in nature.' Price hikes are expected in stores in the fall. Lululemon pulled in $2.4 billion in revenue during its last quarter, but a majority of the company's growth came from international markets. The company currently operates 465 stores in the US and 760 globally. Jobs jettisoned Some of America's biggest companies have announced sweeping job cuts this year. In May, Walmart — America's largest employer — announced it was cutting 1,500 jobs from its tech operations and e-commerce teams. Procter & Gamble, the owner of Tide detergent and Gillette shaving products, is also undergoing significant cuts. The company said it would eliminate 7,000 positions. Job losses have been even more pronounced in the tech sector, as firms increasingly replace human employees with hyper-intelligent machines. The AI-driven job bloodbath marks a major shift for American workers. For years, mass layoffs were concentrated in US manufacturing plants. Now, they're impacting college-educated, high-to-middle-class earners. Microsoft — one of the leading firms investing in AI — is expected to lay off thousands of employees next month as it shifts resources toward deeper investments. Intel, the flagging tech giant, is also letting go of 10 to 15 percent of its manufacturing staff. Amazon CEO Andy Jassy recently said the quiet part out loud: the technology will uproot thousands of Americans from their jobs. 'As we roll out more Generative AI and agents, it should change the way our work is done,' he wrote to his employees in a memo. 'It's hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce.' So far, the cuts haven't had a statistically significant impact on overall job numbers in the US. Last month, employers continued to add jobs.
Bloomberg
5 hours ago
- Business
- Bloomberg
HBO's ‘Mountainhead' Depicts Hollywood's Sinister View of Tech Titans
Welcome to Tech In Depth, our daily newsletter with reporting and analysis about the business of tech from Bloomberg's journalists around the world. Today, Ellen Huet looks at how HBO's movie Mountainhead shows the changing cultural view of tech's rich and powerful. Microsoft job cuts: The software maker is planning to eliminate thousands of jobs, particularly in sales, beginning next month. The reductions follow an earlier round of cuts announced in May that hit 6,000 employees.
Irish Times
11 hours ago
- Business
- Irish Times
How AIB, once worth less than its art collection, came back from the brink
In early March 2012, AIB's chief executive of three months, David Duffy , unveiled a swingeing plan to cut one in five jobs – 2,500 in total – to restore the ailing lender to profitability and make a start on paying back its €20.8 billion taxpayer rescue. 'If you were leaving, someone would bring out a Swiss roll and a packet of biscuits and people would gather around your desk. There was no talk of going out for a nice lunch,' recalls a former AIB staffer who went through their fair share of goodbyes at the time in the group's then headquarters in Ballsbridge . 'The contrast between the relief on the faces of those leaving and the anguish of those who were staying was often stark. It was a very difficult time to say you worked in one of the banks. If you got into a taxi at the time and were asked where you worked, you'd say something like Arnotts, given the level of public hostility towards bankers at the time. Others working in branches got the brunt of it, sometimes being spat at. The atmosphere was febrile.' Almost 13 years later – and 16 years after its initial rescue – AIB returned this week to full private ownership as the Government sold its final 2 per cent stake to market investors, at a share price almost 60 per cent above what it was when it carried out an initial public offering (IPO) of shares on the stock market eight years ago. READ MORE The Government is not alone in seeking to draw a line under crisis-era bailouts. The past month has seen Keir Starmer's administration in the UK sell its remaining shares in NatWest and the Dutch government reduce its holding in ABN Amro below 30 per cent. Elsewhere, Greece concluded the reprivatisation of its lenders late last year with the sale of a stake in National Bank of Greece. [ AIB share sale brings banker pay back into focus Opens in new window ] The sale of the final tranche of AIB shares leaves the State on track to fall about €700 million short of recovering its full rescue bill on a cash-in, cash-out basis, even after it goes about selling stock warrants held in the bank, estimated to be worth about €300 million. Still, it wasn't always a given that taxpayers would recover this much from the most expensive bailout of a surviving Irish lender – especially when AIB shares were trading below €1 apiece, a seventh of their current price, during the Covid-19 pandemic in 2020. 'It did look bleak at various points in terms of getting to this point,' said Des Carville, head of the Department of Finance's shareholding and financial advisory division, which managed the relationship with the bank. Des Carville, head of the Department of Finance's shareholding and financial advisory division 'These were risky investments. Owning equities is risky at the best of times. Owning shares in banks, as we've found out, is particularly so.' Three key factors have turned around AIB's fortunes in the past four years: a spike in interest rates globally as central banks fought inflation; the bank's return to loan-book growth after a decade and a half of contraction; and the shrinking of competition as Ulster Bank and KBC Bank Ireland exited the Republic. The biggest boost from higher interest rates has been thanks to inertia across Irish households as they continue to keep 85 per cent of their €166 billion of cash savings in on-demand and current accounts, earning little or nothing, rather than availing of rates of up to 3 per cent for certain accounts among domestic banks, including AIB. The fact that AIB's deposit base is much larger than its loan book also means that it has earned billions of euro in recent years from storing excess cash with the Central Bank of Ireland. AIB had €31.5 billion lying idle with the regulator at the end of last year. The going deposit rate across euro-zone central banks was as high as 4 per cent in 2024. Christ Cant of Autonomous Research in London, said in a report earlier this year that AIB is what Germans would call a 'eierlegende Wollmilchsau', or egg-laying woolly milk sow – a mythical jack-of-all-trades for investors. 'Amongst European banks, AIB provides an unusual combination of both exceptional capital return prospects [for investors] and strong balance sheet growth prospects, in a great zip-code,' he said, noting that the Republic was a 'structurally attractive market' and 'fiscally responsible sovereign'. Taxpayers felt over the years that bank bailouts left them holding eggs of a more sulphuric kind. AIB would lose more than €34 billion on soured loans – more than any other Irish lender – in the decade after Brian Cowen's government guaranteed the banks in September 2008, including bad-loan charges and losses on portfolio sales to the National Asset Management Agency (Nama) and overseas investment firms. The stench still lingers. Even though the Irish economy is now almost three times its Celtic Tiger peak of €197 billion in 2007, the banking crisis continues to be felt, with Irish households and businesses paying higher interest rates on loans than the EU average, creaking infrastructure and, most profoundly, a post-crash shortage of capital for residential development that has given rise to today's housing crisis. 'A real arrogance' Stephen Bell was part of a team of PwC consultants brought in to help AIB management in late 2010 as it headed into State control. 'One clear memory from my first days was sitting in an office with artwork on the walls and thinking to myself, each one of these pieces is probably worth more than the bank right now,' said Bell, who would serve as AIB's chief risk officer on secondment during 2011. AIB had an impressive collection of Irish art spanning the 1880s through the 21st century, including works from Jack B Yeats, Paul Henry, Sir John Lavery, and Roderic O'Conor. A few dozen of its best pieces would be handed over to the State after the bank succumbed to taxpayer ownership, ending up at the Crawford Art Gallery in Cork. 'There was a real arrogance about AIB ahead of the crisis. It saw itself as a multinational organisation, with its banking unit in Poland, interests in the Baltics and Bulgaria, a large stake in M&T Bank in the US, and a UK division,' said a former senior Central Bank official who dealt with the banks during the financial crisis, but who declined to be named. In the early days of the global crisis in 2007, the regulatory focus was more on Bank of Ireland because of its large mortgage book in the UK, a market where Northern Rock collapsed that September. 'Bank of Ireland had to circle the wagons earlier than AIB,' the former central banker said. It moved sooner to book large loan loss charges, setting aside €230 million for its then financial year to March 2008. [ How AIB went from boom to bust and back again Opens in new window ] AIB's hubris at the time was best captured in its decision to pay €270 million of interim dividends to shareholders that August as banks globally were hoarding capital. Two months later, then chief executive Eugene Sheehy said the bank 'would rather die than raise equity'. The bank's greater exposure than Bank of Ireland to commercial-property lending – which accounted for 36 per cent of its loan book in 2008, compared to 26 per cent at its rival – would ultimately result in it being effectively nationalised. Property and construction accounted for as little as 12 per cent of the bank's loan book in 1998. However, in 2004, AIB's then chief executive Michael Buckley set up a 'win-back team' to work out why it was losing business to Anglo Irish Bank. It subsequently ramped up lending, bankrolling big developers from Liam Carroll to Ray Grehan, whose property empires imploded during the crash. While AIB was known to have better IT systems than its main rival by the time of the crash, its decentralised commercial lending model – with local branches given significant autonomy to dole out loans – and weaker data and loan paperwork left it facing much deeper discounts from Nama when it took over risky real-estate loans. AIB transferred €20.4 billion of loans to Nama at a 56 per cent discount, while Bank of Ireland sent over half that amount, at a 43 per cent discount. 'Also, because the original management team at AIB was cleared out after the crash, it was on the back foot when it came to arguing about Nama discounts or stress tests,' the former central banker says. 'Bank of Ireland, which kept senior management and avoided State control, fought tooth and nail over everything. As it went through a number of leadership changes in the early years, AIB lost all continuity, strategic direction and became more risk averse for an extended period.' Bernard Byrne, who joined the bank in May 2010, initially as chief financial officer, would preside over a bank facing up to massive loan losses and booking a record €10.3 billion net loss that year. Bernard Byrne, former AIB chief executive. Photograph: Eric Luke 'The worst period was definitely 2010, trying to get close to the bottom of AIB's problems,' says Byrne. 'The deepening haircuts that it had to take on loans being transferred to Nama meant that any thought of the bank remaining mainly in private ownership evaporated.' It slunk into 99.6 per cent State ownership two days before Christmas – capping a tumultuous month that saw the State succumb to a €67.5 billion EU-International Monetary Fund (IMF) bailout. Litany of controversies Michael Somers, who launched the National Treasury Management Agency (NTMA) in 1990, was resistant when the then finance minister, Brian Lenihan, started badgering him to join the board of AIB as he prepared to retire at the end of 2009. He had his reasons. Somers had previously found himself in the trenches on AIB when Garret FitzGerald's government was forced to take over the bank's Insurance Corporation of Ireland subsidiary and bail out the bank after the insurer suffered large losses on high-risk insurance policies. Somers was deputy secretary general with the Department of the Finance at the time. 'The fear at the time was that international banks would pull credit lines from AIB and other Irish banks,' recalls Somers. He – as many others – would look on aghast as a litany of other skirmishes with controversy followed. Michael Somers, former chief executive of the National Treasury Management Agency and former vice-chairman of AIB. Photograph: Eric Luke AIB reached a €90 million settlement at the turn of the millennium with Revenue in relation to evasion of Deposit Interest Retention Tax in 2000. In 2002, the bank revealed that a rogue currency trader at its then Allfirst unit in the US, John Rusnak, had racked up a $691 million trading loss. In 2004, it was revealed that the bank had been overcharging customers on foreign exchange transactions for up to a decade, and two years' later, four former AIB executives reached a €206,000 tax settlement resulting from their involvement in a secret offshore investment company, called Faldor. Lenihan made a final effort in mid-November 2009 to change Somers's mind. 'He managed to get hold of me one evening at about a quarter to 12, after I'd gotten home from a nice dinner at the Dutch embassy. He said he needed to announce a number of positions the next morning and asked me again would I join AIB's board as deputy chairman,' he says. 'I relented.' Remedial work The outlook for AIB began to change when Duffy – an Irish banker who had spent his career overseas working for the likes of Goldman Sachs, ING and Standard Bank, leaving him untainted by goings on during the domestic property bubble – took charge in late 2011. By then, AIB was a shadow of its former self, having been forced to sell its 70 per cent stake in Poland's Bank Zachodni, a 24 per cent stake in Buffalo-based M&T Bank, and its holding in Goodbody Stockbrokers, as it raced to raise capital to fill a growing hole in its balance sheet from bad loans – and appease competition authorities in Brussels after receiving state aid. The bank had also inflicted €5 billion of losses on holders of its riskiest, subordinated bonds. 'It's easy to underestimate how much remedial work was done between 2010 and 2011 just to get to a place of some stability. But David coming in as CEO was hugely important,' says Byrne. 'The strength of his personality saw him take a huge amount of pressure off AIB – both politically and generally – and allowed people to work on what needed to be done to chart a way forward.' Return to profit Duffy's cost-cutting plan would involve the shuttering of 67 branches, salary cuts across layers of management, and the closure of the bank's legacy defined benefit pension scheme, where retirement benefits were linked to final salaries. It saw the bank return to profit in 2014, helped as a recovering economy allowed it to release some provisions previously set aside to cover bad loans. The bank also started moving at pace that year to resolve a mountain of bad debt on its balance sheet – which peaked at €31 billion, or more than a third of total loans in 2013. Irish banks also began that year, under pressure from regulators, to finally start to grasp the nettle on a mortgage arrears crisis that had been allowed to fester following the crash. Duffy – who was widely expected to lead AIB through an initial public offering (IPO) – quit unexpectedly in early 2015 to take over as CEO of Clydesdale and Yorkshire Bank in the UK, where he immediately enjoyed a basic salary double the €500,000 allowed at bailed-out AIB – and a generous bonus plan. Mark Bourke, former AIB chief financial officer. Photograph: Eric Luke It would fall to Byrne, Duffy's successor, and his chief financial officer Mark Bourke to get AIB ready for an IPO. Two years in the planning, Project Viking, as it was dubbed, culminated in June 2017 when Paschal Donohoe, only days into the job as Minister for Finance, pressed the button on a sale of a 28.8 per cent stake in the bank to stock market investors, raising €3.4 billion. 'US investors, particularly the big hedge funds, were all talking about the 'reflation trade' at the time,' recalled Bourke, referring to an investment strategy of piling into certain sectors that tend to perform well immediately after a recession. Irish gross domestic product (GDP) soared almost 8 per cent in 2017, making it the EU's fastest-growing economy for the fourth straight year, even if the figures were flattered by the State's large multinational sector. 'It was clear that markets were open and US funds, who were crucial to the ultimate success of the transaction, were prepared to invest in Europe again,' added Bourke, who is currently CEO of Portuguese lender Novo Banco, which French banking group BPCE agreed to buy last week. On the IPO roadshow, AIB teams held hundreds of meetings with potential investors over a number of weeks in Europe, North America and Asia. 'Because we spent so much time answering questions from international investors on the macro Irish story, it created something of a 'halo effect' for other Irish companies and the sovereign,' says Byrne. Contraction to growth Byrne used an Oireachtas finance committee appearance in December 2017 to urge the government to sell down more shares, as the stock was riding high. A global stock market slump in the second half of 2018 killed off any such ambition. The market appetite for Irish banks was dented further in quick succession by the threat of a hard Brexit; low demand for loans amid weak housing starts and cautious businesses; an ultra-low interest rates environment as Europe grappled with an era of subpar inflation, and the Covid-19 pandemic. 'The investor demand certainly was there after the IPO and there was an opportunity to move quickly to sell more shares,' Byrne says. 'There is always a risk of being caught out by unfavourable markets if you don't go when the stars are aligned.' AIB's return to full private ownership took longer than Byrne expected back in 2017. [ The Irish Times view on the State selling out of AIB: competition in banking is now the issue Opens in new window ] His successor, Colin Hunt, who took charge in March 2019, found the initial strategic plan that he and his CFO Donal Galvin had spent a year working on quickly made redundant as Covid-19 threw Ireland and much of the rest of the world into lockdown within weeks of it being unveiled. Loan payment breaks for businesses and households hit by the pandemic superseded loan growth for a period. But the bank has seen a surge in profits in recent years – with net income hitting a record €2.35 billion last year – driven by soaring interest rates as central bankers fought inflation triggered by effects of the pandemic and war in Ukraine. AIB and the other two remaining domestic banks, Bank of Ireland and PTSB, have also been helped as they carved up the loan books and deposit bases of Ulster Bank and KBC Bank Ireland – before the interest rates cycle turned. AIB has also bought back Goodbody Stockbrokers and pushed back into the life and pensions business – which it exited in 2012 as it put Ark Life into winddown – by setting up a joint venture with Irish Life's Canadian parent, Great-West Lifeco, in an effort to catch up with rival Bank of Ireland in the wealth and life insurance market. Colin Hunt, AIB's current chief executive. Photograph: Shane O'Neill/Coalesce AIB saw its loan book contract by almost 60 per cent to €58.4 billion between 2008 and 2021, amid loan sales, and households and businesses, scarred by the crash, repaying debt faster than taking on new loans. However, it has posted underlying loan book growth over the past three years, even after stripping out acquired Ulster loans, following a series of false dawns. A big driver has been green and transition lending, spanning everything from domestic mortgages on energy-efficient homes to an international climate capital business that specialises in lending to large scale renewable and infrastructure projects across Ireland, Britain, Europe and North America. Hunt was asked by one of the overseas investment bankers who beat a track to his office on his appointment six years ago what he'd like to be remembered for 10 or 15 years later. Apparently, he was shocked by the answer: decarbonisation. 'The investment banker was concerned this might appear off-piste if uttered in public. No one was talking about green finance at the time,' says a person familiar with the meeting. 'That's clearly changed in recent years.' AIB's international climate capital unit – where gross loans grew by 34 per cent last year to €5.5 billion – has provided another growth angle for a bank that remains a shadow of its boom-era self. 'Don't expect us to go out and buy another eastern European or US regional bank any time soon,' a senior executive says. Era of normalisation The last government resumed share sales in AIB in early 2022, when its stake stood at 71 per cent. AIB's financial results since the crash have routinely included a lot of what analysts call 'noise' from exceptional charges and gains. Crisis-era loan losses would be followed by a drip-feeding of provisions – which totalled more than €600 billion – to deal with the group's role in the industry-wide tracker mortgage scandal, including almost €97 million for a Central Bank of Ireland fine. More recently, the bank has taken large provisions for customer compensation on speculative noughties UK commercial property investments, known as Belfry funds, that failed, and costs associated with acquiring Ulster Bank loans. Exceptional charges fell by more than half last year to €66 million – heralding, what Hunt told analysts in March, was an era of 'normalisation'. 'We don't expect any material exceptional costs in this year. And I certainly don't want to find ourselves in a position where we have to incur more exceptional costs going forward,' he said at the time. While AIB is not on track to repay all of its bailout, the Government estimates that it is currently about €600 million above water on a combined €29.4 billion pumped into AIB, Bank of Ireland and PTSB – thanks to a €2 billion cash surplus recouped from Bank of Ireland. [ AIB to sell its 49.9% stake in merchant services joint venture Opens in new window ] 'In overall terms this has to be seen as a very positive outcome for the exchequer – and effectively delivers on the Government's commitment many years ago to recoup all the monies invested, which seemed a very unlikely outcome for a long time,' says John Cronin, founder of SeaPoint Insights, an independent research and analysis firm specialising in banking. 'That being said, equity investors in banks usually expect a return of more than 10 per cent per annum – so looking at it through a return on investment lens tells a different story.' A recovery has been made up of bank guarantee fees, interest on bailout bonds, and dividends. It ignores interest paid on money borrowed to save the banks, the 'opportunity cost' to the State's former pension reserve fund (part of which is now part of the Ireland Strategic Investment Fund) investing in ailing banks rather than putting cash to work elsewhere – or, indeed, what inflation has done to the time value of money. Carville insists that State's objective was always clear. 'We viewed the investments on a cash-in, cash-out basis,' he says. Not everyone agrees. 'If you went to a bank to borrow money and offered only to pay back the principal, you'd be laughed out of the place,' says former NTMA chief Somers. Societal scar If top executives were cheered by Donohoe's decision to lift the €500,000 pay cap at the bank on Tuesday after the sale of the remaining State shares, they were keeping it to themselves. Senior AIB officials were keen that there would be no form of celebration as the bank saw off the State as an investor, according to sources. 'We owe an immense debt of gratitude to the Irish taxpayer for the support during one of the bank's most challenging times,' Hunt wrote in an email to employees that morning. Staff leaving the group's Molesworth Street headquarters that evening could not have missed a ruckus down the road as hundreds protested outside the Dáil about the housing crisis – providing a reminder of the deepest societal scar left by the banking crash.
Independent Singapore
14 hours ago
- Business
- Independent Singapore
80 job cuts at Standard Chartered Singapore ‘likely just the start' amid push to return US$1.5B to shareholders
Standard Chartered SINGAPORE: Standard Chartered has laid off 80 staff members in Singapore, mainly from its technology and operations teams, which are being offshored to India, according to eFinancialCareers . Sources at the bank in Singapore also said the cuts are likely just the start of a broader restructuring. This comes amid the bank's global 'Fit for Growth' cost-saving programme to return US$1.5 billion (S$1.93 billion) to shareholders. In 2023, Bloomberg reported that the bank planned to cut jobs across Singapore, London, and Hong Kong as part of its cost-cutting efforts. By August 2024, eFinancialCareers said 'a couple of dozen' junior and mid-level bankers would be among those affected . In November, the bank reportedly laid off around 100 middle office roles across the three cities—a move that was part of the bank's efforts to cut costs by over US$1 billion through 2024. According to the bank's spokesperson, ' We continually look to enhance our operations to serve our clients better. As a global firm, we maintain a dynamic blend of world-class local talent in our key markets, including Singapore, and leverage the multi-disciplinary expertise housed in our global business service hubs.' See also Grab launches R&D centre in Malaysia He added that 'Singapore remains a critical centre for our global businesses and technology and operations teams,' although he did not say whether the job cuts were directly tied to shareholder returns. Despite the layoffs, Malay Mail reported that the bank is still hiring in Singapore, with 60 open roles listed on its careers portal. Open roles include digital product leads, infrastructure engineers, and marketing specialists. Just last week, managing director Ken Ong from recruitment agency Morgan McKinley Singapore said hiring in banks has slowed , with only one new hire for every two who resign, as firms aim to stay liquid. /TISG Read also: DBS may cut 4,000 temp jobs over next 3 years as AI takes over, with reductions to come from 'natural attrition' Featured image by Depositphotos (for illustration purposes only)
