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 64.1 - Monetary intermediation
400 jobs Number of planned job losses
Announcement Date
4 October 2019
Employment effect (start)
4 October 2019
Foreseen end date
18 October 2019
Description
Bank of Cyprus (BoC), one of the largest banking and financial services group in Cyprus, announced a voluntary retirement scheme for 400 employees. The reason behind the decision are cost reduction measurements recommended by International Monetary Fund (IMF). The participation in the scheme is open to employees close to the retirement age of the country, who have at least five years of working experience in the bank. The offer entered into force on 4 October and is expected to end on 18 October 2019.
The bank will provide lamp-sum compensation, which will be calculated based on the years of service, the annual salary and age of the applicant. The upper limit of the compensation will not exceed 70% of the remaining salaries up until the retirement of the applicant, up to a maximum of 200,000. A prolonged healthcare provision for the staff participating in the Health Fund Scheme is also offered up to two years after leaving. The compensation will not be subjected to taxes, which is already approved by the Commissioner of Taxation. According to the press releases, the Cyprus Union of Bank Employees (ETYK) is expected to support the Scheme.
The bank underwent similar restructuring in 2012, 2013 and 2016.
Eurofound (2019), Bank of Cyprus (BoC), Internal restructuring in Cyprus, factsheet number 98793, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/98793.
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