Allied Irish Banks (AIB) is to outsource as many as 1,000 jobs, and cannot guarantee they will not go abroad.

According to the Irish Independent, the State-owned bank has confirmed the move in a bid to up efficiency and reduce costs.

AIB says it will outsource certain functions in consultation with staff and banking union the banking union, the IBOA.

The Irish Independent says that under the outsourcing arrangements, the bank would continue to provide customer services but depending on the function some or all of the work could be done by third-party contractors.

There are concerns that if the work moves outside AIB, it could end up being done anywhere by other operators abroad.

Staff and the IBAO have reportedly been briefed on the review which is said to be at an early stage.

The paper adds that the positions likely to be affected include more than 100 staff working in the cheque clearing unit and as many as 750 in the IT department, as well as other workers.