Piraeus Bank announces another early retirement plan

Greek lender Piraeus Bank this week announced another voluntary retirement program throughout the banking group, with the goal being a workforce of around 8,000, down from slightly more than 10,000 today.

Previous such early retirement programs already manifested themselves in the 2020’s results, with payroll costs easing by 10 percent, while in the first quarter of 2021 the annual rate of reduction in payroll costs hovered at 9 percent.

A restructuring plan unveiled by the ATHEX-listed banking group foresees payroll expenditures to drop to 350 million euros by 2024, from 424 million euros in 2020.

The number of Piraeus Bank branches will also drop to 430 from 504 today by 2024. Operating costs for the group in 2020 were 981 million euros.
According to Piraeus Bank CEO Christos Megalou, similar to previous such programs, the upcoming one will be “implemented amid conditions of workplace peace”.

At first glance, employees over the age of 50 will be eligible for larger sums of compensation, with other factors being years of employment and each staff member’s job description. A bonus might also possibly be allocated to those declaring their intent to voluntarily leave before a deadline for acceptance expires.

A maximum payout of 200,000 euros is foreseen.