Two finance firms cut total of 97 Irish jobs

TWO FINANCIAL services companies, US firm GE Money and Dutch group Citco, have announced a total of 97 job losses.

GE Money said it was reducing its 400-strong workforce in Dublin and Shannon by about 80.

Citco said it would be cutting 17 of 90 jobs at its operations in the IFSC in Dublin, according to a New York-based spokesman for the firm. The company has been operating in the IFSC since 1998.

The company, which employs more than 1,000 people between Dublin and Cork, also services primarily non-Irish hedge funds.

Staff from the company's trading operations and its relationship management are among those whose positions will be cut.

GE Money, one of the State's largest providers of personal, motor and commercial loans, said the job losses were due to the company's decision to cease offering residential mortgages and to reduce its exposure to the car finance sector from January.

The company said it would continue to provide inventory finance to selected car dealers as well as retail car finance and related insurance products. However, it said the level of business transactions would be "significantly reduced compared to previous years".

It said the "unprecedented conditions" in the wholesale bank funding markets had meant that it had to be "more selective" in allocating capital and needed to ensure a reasonable return on investment.

"Mortgages are capital-intensive businesses and the returns available at present no longer justify the cost of funding these products in Ireland," said the firm.

GE Money has about 3,900 outstanding subprime mortgages totalling €500 million.

About 30 per cent of its new business last year was mortgages.

The company said it would work through existing loan applications with mortgage brokers.