Filenews 23 July 2022 - by Theano Thiopoulou
It seems that the Bank of Cyprus has achieved its goal of shedding about 600 employees (or a little above), to the point that departmental divisions may have to reject some applications if they "empty" departments that will affect the proper functioning of the organization. Although initially the voluntary exit plan expired on July 18 (it came into effect on July 4), a small extension was given until Thursday, July 21, but in the end the management decided to let the plan expire on Friday.
The data collected by "F" show that the goal was not only achieved but also exceeded. The official figures are expected to be announced on Monday, namely how many employees are leaving and how much the cost of leaving will be. The main point that characterizes the success of the project, is that in addition to the numerical target, it seems that the qualitative one has also been achieved. Several employees left the bank's branches, at a time when management is shrinking organic growth, or from departments that will be abolished/shrunk. The plan the management of the bank had described as generous. It provides for a maximum tax-free allowance of €200,000, which will not exceed 70% of the remaining salaries, until the normal retirement of the affected employees. The most important thing is that the management of the bank had pointed out that this plan will be the last to be circulated with a voluntary character, and then the issue of redundancies (redundancies) is put on the table.
In the circular to the staff, the CEO of the Bank of Cyprus, Panicos Nikolaou, had stated that "we have been launching for several months now an effort to redefine our operating and business model, in order to make the complex more competitive and efficient that ensures its long-term successful course. The implementation of the digital transformation program also continues with an expansion of the digital products and services offered".
The Bank of Cyprus employed 3,395 people on 31 March 2022, compared to 3,438 people on 31 December 2021 and the cost of personnel amounted to €50 million for the quarter in question. 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 the last departure is taken into account, then the staff was reduced by 3,100 to 3,200.
For the time being, the issue of staff reduction at Hellenic Bank is pending. The management does not wish to pay compensations up to €200,000 to employees and links the amount of compensation to the renewal of the collective agreement.
