12° Nicosia,
28 May, 2024

400-500 Hellenic employees to be made redundant

The bank will offer a final redundancy package for employees leaving Monday the 24th of November

Kathimerini Cyprus

Beginning on Monday, November 24, Hellenic Bank will implement a voluntary retirement program with the intention of laying off 400–500 employees.

It is clarified that this Scheme will be the last one given by the Bank based on the data currently in effect, both in terms of the amount of compensation and the granting of additional benefits (e.g. coverage for medical care and life insurance for a specific period etc.). It is probably the last one that is tax-free.

According to the main points of the Executive Board's letter to the Bank's staff, the Board emphasized that both the Bank's Management and its Executive Board acted consistently and with a sense of responsibility. The Board also goes on to outline a generous Retirement plan after taking into account all the staff's contributions.

It is important to note that the Voluntary Early Retirement Plan of the Hellenic Bank, which will go into effect on Monday, November 14, 2022, was made possible by the conditions brought about by the rise in interest rates, with ETYK also playing a role.

In addition, it should be noted that as part of the Hellenic Bank's Transformation Plan, all staffing requirements will be reevaluated after the Plan is finished to guarantee the Bank's efficient operation. This suggests that it is highly likely that mandatory staff relocations will be used to fill any gaps that may develop ensuring the smooth operation of branches.

The new service (Task Force), which will be created immediately and to which specific tasks/activities will be transferred, will require mandatory transfers to staff it.

The organizational structure of the Bank is also anticipated to undergo significant change following the completion of the Transformation Plan, as numerous departments will be merged or reorganized and a number of roles will be eliminated as a result of the automation, digitization, and introduction of new ways of working.

The message states that "The Bank's Management ensured that the Plan was particularly attractive, encouraging the staff in their pertinent decisions."

Alternative exit strategies will be implemented if the goal is not achieved

We would like to point out that, in the event that the Bank's initial target is not achieved in terms of the number, and positions, of redundant staff, the Bank may need to review its downsizing strategy.

Cyprus  |  banks  |  Hellenic

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