NewsLocalHellenic Bank Cyprus plans to make 300-350 staff redundant

Hellenic Bank Cyprus plans to make 300-350 staff redundant

In a bid to lower operating costs and reduce its high cost/return rate Hellenic Bank Cyprus has announced plans to make 300-350 of staff redundant, Philenews reported on Tuesday.

The CEO of the island’s second-largest commercial bank has already sent letters to labour unions PEO, SEK, and ETYK – the Union of Bank Employees – informing them of the lender’s intentions.

German CEO Oliver Gatzke has also made clear they are determined to go ahead with the bank’s new business plan to reduce operating costs and called them to come to the negotiation table under the Labour Relations Code.

Gatzke also warned that the bank plans to gradually get rid of the “outdated” costly practice of horizontal promotion and compensation schemes.

Hellenic Bank is now focusing on efforts on both increasing interest income through new lending and generation of miscellaneous income, he also said.

As well as containing all administrative expenses, basically through redundancies.

Last year, the bank recorded losses of €11.7 million.

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