Cyprus banking: a number of contradictory announcements

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Large Cyprus banks keep releasing contradictory announcements with regards to the banks’ workforce, teetering between plans of hiring new employees and providing early retirement of the existing staff members.
However after two years of increasing the number of employees and reducing income, has forced banks’ management to reconsider payroll amounts.

A few days ago Hellenic Bank launched an early voluntary retirement program for the bank employees. The Cooperative bank of Cyprus (COOP) has followed the same strategy having made a similar declaration. Nicholas Hadzhiyannis, head of COOP, stated that the number of personnel was reduced by 100. In total there are 2,665 employees currently employed at the Cooperative bank today.

As for Hellenic Bank, within recent years it is already second measure of such a kind. Due to the use of the similar plan in 2013, 11% of the personnel had retired, thus reducing the payroll budget by 14%. The amount of bank compensations to 186 retired employees reached 9.6 million euros then. Today 1,403 employees work for Hellenic Bank. According to the latest data, Hellenic Bank has increased the staff number approximately by 150 people in recent years.

Bank of Cyprus did not make any announcements on any early staff retirement programs yet.