The Bank of Cyprus announced on Thursday it would be shedding 470 jobs as part of a voluntary exit scheme, the fourth since 2013.
In a statement, the lender said it has approved 470 applications of people who opted to take the plan, at a cost of €79m.
“Following the completion of this voluntary staff exit plan, the number of employees is reduced by 11 per cent, with an estimated annual saving of €28m or 13 per cent of staff costs,” the bank said.
The VRS was for all permanent staff of the lender and its subsidiaries with at least five years of continuous service who were due to retire in 2020 and beyond.
Staff who met the criteria were offered compensation based on their years of service.
The maximum amount, which will be tax-free, could not exceed 70 per cent of the remaining salaries until normal retirement, or €200,000.
Departing staff will also enjoy medical coverage for two years, which will also cover dependents who have already been registered to the health fund.
They will also have insurance coverage for two years in case of death as long as they do not find employment elsewhere within that time.
Staff who will opt to leave will also collect their provident fund.
In the last VRS, Bank of Cyprus shed 359 staff at a cost of €57m with the average payout being €159,000 per person.