Cyprus banking sector undergoes major consolidation and digitalization

Data from the European Central Bank reveals a significant transformation in the Cypriot banking sector over the past decade. Between 2015 and 2025, 370 branches were closed, and the total workforce was reduced by 4,634 employees. The contraction accelerated following the 2012-2013 financial crisis, the collapse of Laiki Bank, and the closure of cooperative credit institutions, resulting in 657 branch closures since 2012. By 2025, the number of employees fell to 6,349 from a peak of 12,853, with 6,504 staff leaving through voluntary redundancy or retirement. Compared to 2024, the sector saw a further reduction of 259 employees in 2025, while the branch network stabilized at 193 locations. This downsizing is driven by increased digitalization and investment in e-banking and ATM services to reduce operational costs. Bank of Cyprus recently managed small-scale voluntary exit schemes for approximately 150 staff, while Eurobank Ltd announced an expanded scheme in March 2026 targeting 300 employees.