The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Financial Services Financial And Insurance Activities Financial Service Activities, Except Insurance And Pension Funding 64 - Financial service activities, except insurance and pension funding
185 jobs Number of planned job losses
Announcement Date
24 July 2012
Employment effect (start)
1 August 2012
Foreseen end date
31 December 2012
Description
Laiki Bank, the Cyprus Popular Bank, has submitted a proposal for voluntary retirement of 185 employees who were set to retire in 2017.Â
Laiki Bank, one of the two largest banks in Cyprus, has been nationalized in June 2012 in order to meet the requirements of the European Banking Authority. The cost of the bank's recapitalisation has reached a total of € 1.8 billion. As a result, the state obtained 84% of Laiki Bank's shares.
As part of this financial support, the bank is expected to reduce its payroll by 12.5% in 2012. The bank plans to close 12 branches in August, in order to reduce the overall number of branches in Cyprus from 116 to 95 by the end of the year.
The bank's restructuring plan is expected to include further redundancies in the coming years, which could affect up to 800 people (i.e. 1/3 of the existing workforce).
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Sources
9 August 2012: stockwatch.com
Citation
Eurofound (2012), LAIKI BANK, Internal restructuring in Cyprus, factsheet number 73951, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/73951.
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