Friends First economist Jim Power

Friends First today announced it plans to cut Irish 147 jobs from the current level of 540 people. The majority of jobs will be lost as a result of the closure of the asset finance division, Friends First Finance. The company said Friends First Finance has been significantly impacted by the global credit crunch and its business model of borrowing from the inter-bank market is no longer sustainable in the current climate. The closure of Friends First Finance will result in the loss of 98 jobs on a phased basis as the business is wound up over the next 5-7 years.

The company said it is also reorganising the wider Friends First business "to address the new realities of the Life & Pensions market which has seen a decline in new business volumes of about 40% during 2009."

The company said its strategy is to build long term and "durable relationships with key independent brokers," requires a smaller, more focused workforce to meet the new market challenges. The company is seeking to reduce the remaining workforce by 49 people during 2009 through a programme of voluntary redundancies. A new career break programme has also been introduced.

Commenting on the announcement, Adrian Hegarty, Group Chief Executive 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. 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.


“The decision to reduce the workforce across the rest of the business reflects the changing face and reduction in size of the life and pensions sector and we must respond by reorganising our business to meet the challenges of the new marketplace. I am confident that the steps we are taking, where we will focus and develop our core business of protection and investment activities, will mean that Friends First can perform profitably and successfully and provide long term secure employment into the future. Friends First remains an integral part of the Eureko group, and by taking these difficult but necessary measures and with the ongoing support of our parent, we are ensuring Friends First is well placed to prosper in the years ahead. ”

Friends First is a leading provider of pensions and investment products in the Irish market and will continue to employ approximately 390 people at its corporate headquarters in Dublin and regional offices in Cork and Galway.