FINANCE: Bank of Cyprus agrees voluntary exit of 470 staff

The island’s largest lender, Bank of Cyprus announced it has approved the voluntary exit of some 470 employees at the cost of almost €80 mln.

It said 470 employees have opted to leave the bank through a voluntary exit scheme presented before them earlier this year as part of a restructuring blueprint.

The total cost of approximately €79 mln is expected to be acknowledged in the consolidated results statement for the fourth quarter of the year, said BoC.

“With the completion of the voluntary retirement plan, the number of staff has decreased by approximately 11% and annual savings are estimated at around €28 mln or 13% of staff costs,” a bank statement said.

BoC noted, the project falls in line with its digital transformation strategy aimed at achieving “a lean operating model and a lower cost base over time”.

The bank’s fourth consecutive voluntary retirement plan since 2013 has provided for maximum compensation of up to €200,000, covering approximately 70% of all employees leaving.