Permanent TSB (PTSB) is to reduce its workforce by 250 people as part of a major restructuring plan.

The bank is looking to cut costs by 10%.

It says it will seek the job losses on a voluntary basis.

It is also planning to close at least 16 of its 92 branches around the country.

PTSB Chief Executive Jeremy Masding last week revealed to the Oireachtas Finance Committee plans to overhaul the State-owned institution.

This morning the 2,000 staff were briefed on the proposals which include 250 voluntary job cuts by the end of the year with an offer of 3 weeks pay for each year of service.

16 of the banks 92 branches will be closed while 2 other locations will be changed to self-service outlets with an amalgamation of 2 Dublin city centre sites.

Permanent TSB says the move is designed to create a smaller and profitable institution by 2016 along with securing its future as an efficient, competitive and customer focused bank.

Newstalk’s Business Editor Ian Guider says PTSB has effectively been ordered to cut its costs by the Troika.