Cyprus banks closed 370 branches and cut their workforce by 4,634 employees over the ten years to 2025, according to an analysis of figures published by the European Central Bank (ECB) highlighting the rapid transformation of the island’s banking sector.
Compared with 2024, the number of bank employees fell by a further 259, while the branch network held steady at 193 island-wide, the data showed.
The sharpest contraction came after the 2012 and 2013 financial shocks. Staff numbers fell from a peak of 12,853 to 6,349 by 2025, with 6,504 employees leaving through voluntary redundancy schemes or retirement. The closure of Laiki Bank and the cooperative credit institutions, combined with the digitalisation of transactions, resulted in 657 branches shutting since 2012, according to the analysis.
Credit institutions have been investing in technology upgrades to offer faster and more accessible services with fewer staff, and everyday transactions are now conducted largely through e-banking and ATMs, Phileleftheros reported.
Recent voluntary exit schemes
Bank of Cyprus implemented a small-scale controlled scheme during 2025 under which approximately 110 full-time employees were approved for departure. In early June, the bank announced a further voluntary exit scheme of very limited scope targeting approximately 40 staff.
Eurobank Ltd announced a significantly expanded scheme in March 2026 targeting a reduction of approximately 300 employees; that scheme remains open. It covers permanent staff in Cyprus employed in both the bank and the group’s insurance subsidiaries.
EU-wide picture
Across the European Union, the number of bank branches fell by 2.62% compared with the end of 2024, with declines recorded in 23 of the 27 member states, ranging from -0.2% to -12.16%. The total EU branch network stood at 122,889 at the end of 2025, of which 86.13% were in the eurozone.
The number of bank employees across the EU fell by 0.80%, with staff numbers declining in 16 of the 27 member states. Total EU banking employment stood at 2,130,467 in 2025, with 1,742,928 in the eurozone.
The degree of concentration in the banking sector — measured by the share of assets held by the five largest credit institutions — continued to vary significantly across member states, ranging from 34.37% to 95.2%, with an EU average of 69.33% at the end of 2025.