Voluntary exit plan for 600 bank employees

The Bank of Cyprus will implement a voluntary exit plan, with the aim of leaving 15% of its staff, which corresponds to 500-600 people. According to a statement issued by the Bank, the specific plan will be the last one it will implement and the compensation for those who choose it can reach up to €200.000, tax-free. In the event that the plan does not achieve the desired reduction in staff, the Bank notes that it will consider other avenues, including redundancies.

In his message to the employees, the CEO of the Group, Panikos Nikolaou, noted that in the context of the redefinition of the operational and business model of the Bank and its digital transformation, actions have been implemented that significantly affect the structure and operation of the group.

These actions concern the sale of portfolios of non-performing loans as well as other assets, the upgrading and expansion of the offered digital services and products, resulting in the possibility of self-service for customers without the need for their physical presence in the store and thus the reduction of number of transactions carried out in stores and the increase in the use of digital channels. In addition, the reduction of administrative/support tasks was achieved through automation, system upgrades, process simplifications and centralizations, the radical simplification and automation of the financing process, the optimization of the geographical footprint of the branch network by closing 15 more branches, the optimization and simplification of Organizational Structures with the simultaneous abolition of managerial levels and the termination of the work of the Task Force service.

Based on these, the Bank prepared a comprehensive Reorganization Plan, which captures the main necessary changes per Division, which result in the abolition of many existing jobs and, by extension, creates the need for a corresponding readjustment of the number of staff.

"In this context, we examined all possible options for staff reduction. Out of respect for our staff and responding to ETYK's request and despite the competitive economic environment, the Bank's Management decided for the last time to offer a large-scale generous Voluntary Exit Plan with a maximum compensation amount of €200.000", says Mr. Nikolaou, adding that "this decision was made consciously to give the opportunity to leave with dignity to those who will no longer have a job or cannot meet the demands of the new era".

He noted, however, that in case the desired staff reduction is not achieved, other methods of reducing the number of staff should be considered, "including that of redundancies, based on the Reorganization Plan that has already been submitted for information and consultation with ETYK and has been notified to the Labor Relations Department of the Ministry of Labour, Welfare and Social Insurance".

Source: KYPE