Central Bank Governor Warns Staff of Job Cuts Amid Rising Costs
Central Bank Governor Gabriel Makhlouf announced potential job cuts to staff, aiming to reduce rising operating costs and save €75 million by 2030. This follows a doubling of the workforce and recent financial losses. Voluntary redundancies are expected, with final decisions in autumn.
Central Bank governor Gabriel Makhlouf informed staff on Tuesday of likely job cuts later this year. This move aims to curb rising running expenses after the workforce more than doubled to 2,225 since the financial crisis.
Makhlouf, reappointed for a second seven-year term in March, stated in an email that the bank needs to halve a projected 6 per cent annual increase in its cost base out to 2030, aiming to save €75 million. Of this, €49 million will come from non-pay efficiencies, including fewer contractors, process improvements, and increased automation.
The remaining €26 million will be saved following a review of divisions, expected to result in voluntary redundancies. Makhlouf has committed to no pay cuts or compulsory redundancies. Detailed decisions are anticipated in the autumn.
Staff numbers have doubled since 2008, including the integration of the financial regulatory authority in 2010, leading to a basic pay bill of €208.5 million last year and total staff expenses of €260.9 million. The bank has also incurred losses of €104.6 million last year and €795.4 million in 2024, following the end of a period of significant profits in 2022. From 2007 to 2022, the bank generated over €23.5 billion in profits, transferring more than €18.5 billion to the Government.