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
110 jobs Number of planned job losses
Announcement Date
16 November 2020
Employment effect (start)
16 November 2020
Foreseen end date
31 December 2020
Description
On 16 November 2020, the Cypriot bank Astrobank began implementing a Voluntary Exit Plan. The company, which operates 16 branches and business units all over the Republic of Cyprus, decided to downsize the personnel of the company by 110. The aimed job reductions regard jobs from all units and branches of the bank across the country. Astrobank cites the general pressure on banks in Cyprus to reduce operating costs as the reason behind the restructuring.
For those employees who work in the regions of Limassol, Larnaca, Paphos and Famagusta in particular, there is the possibility of benefits to be provided for participation in the Voluntary Exit Plan. Permanent employees aged 30 or above, who have maintained a minimum of 3 years of continuous service and were scheduled to retire on or after December 31, 2021, were granted access to the plan. The plan also provides for the (temporary) continuation of certain benefits for the participants,including life insurance and medical care. Employees who choose to join the Plan must retire by 31 December 2020, at the latest.
Update 27/06/2023
On 27 June 2023 AstroBank announced the completion of the second phase of the Voluntary Exit Plan. The initial goal set by the company back in 2020, to reduce its workforce by 110 employees, was achieved.
The second phase was announced on 7 June 2023, and with its completion an additional 30 employees left the company. A larger number of employees volunteered to participate, but the bank chose to retain 400 employees according to its initial plan. The employees who participate in the second phase of the Plan receive the same benefits as those who participate in the first phase. Additionally, the House of Representatives passed legislation allowing employees who participate in voluntary exit schemes to receive unemployment benefits, despite their employment termination being their own decision.
Eurofound (2020), AstroBank, Internal restructuring in Cyprus, factsheet number 109272, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/109272.
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