BNP Paribas is reportedly planning to reduce its network of retail branches in France as part of a strategy to enhance profitability.
Its CEO Jean-Laurent Bonnafe confirmed that the bank intends to close approximately 80 branches this year, followed by an additional 120 in the next year, reported Bloomberg.
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Reports from French newspaper Les Echos suggest that the total number of branch closures could reach approximately 500 by 2030.
This move is expected to lead to a 5% annual reduction in branch staff, while the bank aims to increase employment in online and telephone banking services.
Discussions with labour unions regarding this strategy, which was first communicated in March, are ongoing.
Sources familiar with the situation indicated that impacted staff will be offered alternative roles within the organisation.
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By GlobalDataBesides, BNP Paribas is relying on natural attrition to manage workforce reductions without resorting to layoffs.
A spokesperson for BNP Paribas stated: “We presented in March an ambitious growth plan to trade unions that outlines a strategic roadmap and related investments for our Commercial & Personal Banking in France. Every employee of the bank has their place in this project.”
The restructuring is part of Bonnafe’s focus on revitalising the retail banking sector, which has faced challenges due to local regulations and the European Central Bank’s monetary policies.
Isabelle Loc, who was appointed to lead the retail banking division following the departure of Marguerite Berard, is expected to leverage the digital platform Hello bank and private banking services to drive growth.
The bank currently operates around 1,500 branches in France, and under Loc’s strategy, some branch functions will be shifted to remote customer service centres, with employees being offered new positions.
BNP Paribas plans to reveal further details about its restructuring strategy by the end of June.
In April this year, BNP Paribas extended its partnership with IBM Cloud for another ten years to enhance its cloud-native strategy and advance generative artificial intelligence (GenAI) capabilities.
