The Bank of Cyprus announced the successful completion of its voluntary staff retirement plan. Through the Plan, approximately 550 employees have been approved for redundancy, with a total cost of approximately €99 million expected to be indicated in the consolidated statement of income in the third quarter. Upon completion of the Plan, staff numbers will have been reduced by approximately 16% with annual savings estimated at approximately €37m, approximately 19% of staff costs.
In addition, the Group has reduced its number of branches by 20 since the beginning of the year amounting to a reduction of 25%. The Bank of Cyprus currently has 60 branches in total. Through these two actions, the Group managed to meet its target of reducing its staff by 15% and the number of branches by 25% before the end of 2022.
In total since June 2019, the Group has since reduced its staff by more than 1,300 people (a reduction of approximately 30%), and the number of branches by 37 (a reduction of approximately 40%).
According to the official announcement, the Plan is part of the Group's strategy to further improve efficiency.
Panikos Nikolaou, CEO of Bank of Cyprus, statement:
"The successful completion of our recent voluntary redundancy plan means we are achieving our earlier than planned objective of streamlining our operating model, which is key to improving our operational efficiency, sustaining our business model and achieving our medium-term goals".
Bank of Cyprus profile
As of 31 March 2022, the Bank of Cyprus Group operated 86 branches in Cyprus. As of March 31, 2022, the bank's total assets stood at €25.1 billion and Equity at €2.1 billion. The Bank of Cyprus Group employed 3,395 people internationally. The number of staff has been reduced by around 550 people, following the completion of the voluntary redundancy plan in July 2022.