AIB is planning to cut over 1,500 jobs by 2022 after its profits fell by over €300million.
The bank had already reduced its workforce by around 500 in the last year.
CEO Colin Hunt revealed today that more jobs will be lost over the next two years, with the bank hoping cuts will be made through negotiated voluntary severance.
He told Morning Ireland: "We will see headcount reducing to a little bit less than 8,000 at end 2022.
"When I took over as CEO 12 months ago, we had 10,000 employees working in the group. We reduced that by 500.
"That was driven by three factors; retirement in the normal course, people choosing the leave the bank and pursue careers elsewhere and also a voluntary redundancy programme.
"Those three features will help us reduce headcount over the next three years."
The need for fewer staff working in legacy areas of the banks was the reason behind the decision making.
It comes as AIB on Friday reported a fall in profits for last year with its operating profits falling from €1.41billion to €1.01billion.
Commenting on the bank's final year results for 2019, Mr Hunt said: “Today we announce full year results, my first as Chief Executive, along with new medium-term targets and an update on capital plans.
"I am glad to report that the fundamentals of the Group remain strong with sustainable underlying profits and a robust capital base. 2019 was a year of progress, delivery and planning.
"Led by our purpose we improved our customer proposition and streamlined service to our c. 2.8 million customers whilst increasing our new lending to €12.3 billion to support economic growth.
"We achieved our milestone of reducing non-performing exposures (NPEs) to c. 5%, continue to take action on costs and are returning a dividend to shareholders.
"As we announce our new medium-term targets today and embark on our next phase, I am intent on addressing legacy matters of the past so that our future, characterised by a normalised cost base, balance sheet and capital structure, will deliver for our stakeholders and sustainably generate shareholder value.”
