Bank branches in Cyprus have declined significantly over the past decade, with banks closing 370 branches and reducing their workforce by 4,634 employees between 2015 and 2025, according to an analysis of European Central Bank (ECB) data.
The figures highlight the rapid transformation of the island’s banking sector as institutions increasingly shift towards digital services and streamlined operations.
Compared with 2024, the number of bank employees decreased by a further 259 in 2025, while the branch network remained unchanged at 193 locations across Cyprus.
Impact of financial crisis and digitalisation
The most substantial restructuring followed the financial crisis of 2012 and 2013. Banking sector employment fell from a peak of 12,853 workers to 6,349 by 2025, with 6,504 employees leaving through voluntary redundancy programmes or retirement.
The closure of Laiki Bank and the cooperative credit institutions, combined with the growing use of digital banking services, led to the shutdown of 657 branches since 2012.
Banks have continued investing heavily in technology upgrades, allowing customers to complete most daily transactions through e-banking platforms and automated teller machines (ATMs), reducing the need for extensive branch networks and large staffing levels.
Recent voluntary exit schemes
The restructuring of the sector has continued through targeted voluntary departure programmes.
Bank of Cyprus implemented a limited voluntary exit scheme during 2025, resulting in approximately 110 full-time employees leaving the organisation. In June, the bank announced a further small-scale scheme aimed at around 40 additional employees.
Meanwhile, Eurobank Ltd launched a broader voluntary exit programme in March 2026, targeting a reduction of approximately 300 employees. The scheme remains open and includes permanent staff employed both by the bank and its insurance subsidiaries in Cyprus.
EU banking sector also shrinking
The trend is not unique to Cyprus. Across the European Union, the number of bank branches fell by 2.62% during 2025, with declines recorded in 23 of the 27 member states.
At the end of 2025, the EU had 122,889 bank branches, with more than 86% located within the eurozone.
Banking employment across the bloc also declined by 0.80%, with staff numbers falling in 16 member states. Total employment in the EU banking sector stood at 2.13 million workers, including 1.74 million in eurozone countries.
Banking concentration remains high
The ECB data also showed considerable variation in banking sector concentration across member states.
The share of assets held by the five largest credit institutions ranged from 34.37% to 95.2%, with the EU average reaching 69.33% at the end of 2025.
The findings underline the continuing consolidation and digital transformation of the European banking industry, with Cyprus remaining among the countries that have experienced substantial structural changes over the past decade.
Also read: Scenes of neglect in Paphos – “not the standards of a European city”
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