The asset finance arm of Friends First is due to be closed to
new business in a move that will lead to a culling of almost a
quarter of the Irish financial services business’ workforce.
The portfolio of Friends First Finance, the company’s leasing
arm, will be wound-down over the next five to seven years, while 98
members of staff at the division will lose their jobs.
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A total of 147 staff are to be made redundant from Friends First
out of a global workforce of 540.
Although Friends First Finance is the only division of the
lender which is being closed down, its life and pensions market saw
a 40 percent decline in new business this year compared to the
first eight months of 2008.
The Irish leasing market has been hit hard by the recession,
with Bank of Scotland Ireland having announced plans to cull its
asset finance workforce. Lombard Ireland is also under review by
its parent, RBS, and has been deemed to be “non-core”.
Commenting on the plans to close Friends First Finance, Adrian
Hegarty, group chief executive of Friends First, said: “It has been
a difficult decision to reduce our workforce across the Friends
First Group. The closure of Friends First Finance is a necessary
decision because of the lack of availability of credit, at
appropriate rates, combined with the downturn in the Irish
economy.”
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By GlobalDataHe added: “These factors have undermined the business
significantly. It is with deep regret that we’ve reached this
decision as Friends First Finance was a successful business for the
past 12 years, run by a dedicated and skilled workforce.”
Brendan Malkin
