InsiderBusinessBank of Cyprus again set to reduce staff-related costs

Bank of Cyprus again set to reduce staff-related costs

Bank of Cyprus is set to reduce staff-related costs with changes in salaries and early retirement and part time employment options again on the table, according to a July 31 circular by the management.

The Human Resources Department’s circular also informed the lender’s some 3,700 employees that unpaid leave could also be considered, Philenews reported on Wednesday.

“The coronavirus pandemic has affected us all, ushering in a new reality to the labour sector and indicating that we all have to adjust to a new state of play,” the circular also said.

“Within this framework and with the main goal being the provision of facilities to staff that will lead to a better work life balance, we are immediately proceeding with labour institutions,” it added.

It then clarified that for part-time work, earnings will be calculated as a ratio of the agreed number of weekly working hours to the normal full-time working hours.

In addition, it specified that approval of requests of this kind is subject of approval by Management of the Group so that the smooth operation of affected branches/departments continues.

Bank of Cyprus, the island’s largest lender, posted a net loss of €70 million for 2019, due to increased provisions after postponing a sale of non-performing loans and the cost of a voluntary retirement scheme.

In view of the COVID-19 outbreak, the bank has been updating macroeconomic assumptions.


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