Alpha Bank Cyprus launches new voluntary exit scheme

Alpha Bank Cyprus has initiated a voluntary exit program for its staff following the acquisition of Astrobank operations. CEO Miltos Michaelas announced the plan earlier this year, with the process expected to conclude in the first half of 2026. The maximum compensation offered reaches 225,000 euros, surpassing the previous industry standard of 200,000 euros. Under the current tax framework, the first 200,000 euros are tax-exempt, while the remaining amount is subject to a 20% tax rate. The package includes an additional 10% compensation for specific staff groups. This trend of downsizing is prevalent in the Cypriot banking sector, driven by digitalization, branch network reduction, and increased competition from Fintech companies. The labor union ETYK continues to lobby for higher compensation packages for departing employees across the industry.