The "fat" compensations to bank employees that reached up to 200 thousand euros through the Voluntary Retirement Plans have come to an end.
This is the message given by Bank of Cyprus CEO Panikos Nikolaou during yesterday's announcement of the Group's financial results.
According to what Mr. Nikolaou mentioned yesterday, he indicated that the exit plans in the form we have known until now are not going to come back to the table, at least as long as he is at the helm of the Bank of Cyprus.
He said that the latest exit plan was not made by chance but was carried out on the basis of the group's reorganization plan.
The aim is also to improve the skills of the Bank's staff, while the recruitment of people with expertise in technology is expected, something that will strengthen the huge effort of the digital transformation of the Bank of Cyprus.
The staff of the Bank of Cyprus was reduced by 1.283 people
From June 2019 until today, the staff of the Bank of Cyprus has decreased by 1.283 people.
Specifically, the staff of the TC amounted to 4.155 people in June 2019, while in July 2022 it decreased to 2.872 people.
As reported in the Financial Results of the Bank of Cyprus during the last Voluntary Retirement Plan in July 2022 approximately 550 employees were approved for retirement with the total cost of compensation being around €99 million.
It is estimated that with the latest Retirement Plan the Bank will save approximately €37 million per year which corresponds to 19% of the total staff costs while reducing the total staff by 16%.
The number of stores has decreased by 25% since last year
As part of restructuring, Bank of Cyprus proceeded to close 20 branches from the beginning of 2022.
Based on the data from 2019 and when the total branches of the Bank of Cyprus were 96, today a total of 36 branches have been closed.
From December 2021 and when there were a total of 80 stores, today only 60 remain in operation.
As stated by the Bank of Cyprus, the Group has succeeded in completing its objective, earlier than planned, to reduce staff by approximately 15% and the number of stores by 25%.
Through these two successful initiatives, the Group has achieved ahead of schedule the goal of streamlining our operating model, which is key to improving our operational efficiency.
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