Soc Gen to cut 1,600 jobs
09 April 2019 Paris
Image: Shutterstock
Societe Generale’s two adjustment projects have been submitted for consultation and could lead to a reduction of approximately 1,600 jobs globally, including around 750 in France.
In France, these job reductions would be made in accordance with the new employment agreement signed with all employee representatives.
Societe Generale explained that this would be carried out through internal mobility and natural departure and, in some perimeters, through a voluntary departure plan.
Internationally, these job reductions would be done in accordance with local regulations and practices, it was noted.
The planned strategic adjustments are aimed at better meeting clients’ expectations while structurally improving its profitability.
As part of these projects, the group will concentrate its wholesale business model on its areas of strength where it has sustainable and differentiating competitive advantages.
In global markets, the bank wants to focus on investment and financing solutions, by drawing on its leadership in equity derivatives and structured products.
The bank also plans to close its over-the-counter commodities business and its proprietary trading subsidiary and reorganise and refocus its flow activities to make them more profitable.
In financing and advisory, the bank plans to strengthen the alignment of its teams and its offers in order to pursue its growth plan, Societe Generale noted.
Meanwhile, in asset and wealth management as well as in securities services, actions would also be implemented in order to better leverage resources towards core franchises while reducing costs.
Additionally, Societe Generale explained that the group intends to simplify the head office structure of its international retail banking and financial services activities, reflecting the reduction of its scope following the recent disposals.
The contemplated organisational projects would be implemented following the consultation with the French employee representative bodies, which is expected to be completed by Q3 this year.
In France, these job reductions would be made in accordance with the new employment agreement signed with all employee representatives.
Societe Generale explained that this would be carried out through internal mobility and natural departure and, in some perimeters, through a voluntary departure plan.
Internationally, these job reductions would be done in accordance with local regulations and practices, it was noted.
The planned strategic adjustments are aimed at better meeting clients’ expectations while structurally improving its profitability.
As part of these projects, the group will concentrate its wholesale business model on its areas of strength where it has sustainable and differentiating competitive advantages.
In global markets, the bank wants to focus on investment and financing solutions, by drawing on its leadership in equity derivatives and structured products.
The bank also plans to close its over-the-counter commodities business and its proprietary trading subsidiary and reorganise and refocus its flow activities to make them more profitable.
In financing and advisory, the bank plans to strengthen the alignment of its teams and its offers in order to pursue its growth plan, Societe Generale noted.
Meanwhile, in asset and wealth management as well as in securities services, actions would also be implemented in order to better leverage resources towards core franchises while reducing costs.
Additionally, Societe Generale explained that the group intends to simplify the head office structure of its international retail banking and financial services activities, reflecting the reduction of its scope following the recent disposals.
The contemplated organisational projects would be implemented following the consultation with the French employee representative bodies, which is expected to be completed by Q3 this year.
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