KEO layoffs to save CYP 150k

KEO Public Co. Ltd. will proceed with the layoff of 110 employees from all department units with immediate effect as part of its restructuring plan. The staff redundancies, which were inititally rumoured at 200-225 were agreed with both trade unions representing staff, according to which there will be no industrial action against the company.

This development will have a one-off charge in the P&L of KEO, with a positive future effect in the Company’s operating and bottom line profitability.

Given that the average annual employee payroll for the last two years stood at CYP 13.500, Egnatia Financial Services estimates that the cost savings on total payroll expenses would approximately reach CYP 150.000 in FY06 (excluding the one-off redundancy costs). KEO reported that the Company’s preliminary FY05 net profit figure reached CYP 970.000.