Filenews 6 July 2022 - by Theano Thiopoulou
A total of 2,633 employees have left the bank of Cyprus' human resources from 2013 to 2021, through voluntary exit plans, with a maximum amount of ex gratia compensation of €200,000. If it is estimated that the bank's management aims to reduce its staff by 500 - 600 people with the new plan that has been in place since last Monday, then the employees who have left / will leave with a plan in the last 9 years will reach about 3,100 to 3,200.
According to the data collected by "F", plans for staff losses from the Bank of Cyprus were announced in 2013, 2016, 2019, 2020 and 2021. In 2013 and 2016, staff departure plans focused on the rational operating structure and since 2019 the predominant reason is the digital transformation, combined with the shrinking network.
Specifically, in 2013, 1,597 bank employees left the Bank of Cyprus. With the departures that took place, the staff of the Bank in Cyprus decreased by about 25%. The Bank had estimated that it would save about 35% of the cost of the annual payroll in Cyprus.
In June 2016, the Bank of Cyprus successfully completed the voluntary withdrawal plan, which falls under the band's strategy to maintain a rational operating structure. Through the plan, 359 employees were approved for retirement, with the total cost amounting to €57 million. After the completion of two voluntary retirement schemes during the first half of 2016, the number of staff in Cyprus decreased by 10% and the annual savings were estimated at 12% of staff costs.
In October 2019, it was announced, through the plan, that around 470 employees had been approved for retirement, with the total cost amounting to approximately €79 million. With the completion of the voluntary redundancy scheme, the number of staff was reduced by approximately 11% and the annual savings are estimated at €28 million or 13% of personnel costs. The 2019 plan was part of the complex's digital transformation strategy, which aims to achieve a rational operating model and a lower cost base over time. In 2020, 27 employees left but there is no data on compensation costs.
On December 17, 2021, it was announced that through the plan 100 employees have been approved for retirement, with the total cost amounting to approximately €16 million, with an average repayment period of 2.4 years. The annual savings are estimated at around €6.6 million. and stressed that the Bank remains committed to its medium-term strategic priority for improving operational efficiency, which is expected to be facilitated by the digital transformation.
