French lender Societe Generale has revealed that its merger with Crédit du Nord will result in 3,700 job redundancies.
The lender noted that the jobs cuts do not involve any compulsory departure and will come about through natural attrition between 2023 and 2025.
The merger, which was announced in 2020, will create a retail bank with one branch network, one head office, and one IT system serving nearly ten million clients.
It will also result in 600 branch closures. The lender added that regrouping will not involve exit from any town.
In 2025, the merged entity will have 25,000 employees and 1,450 branches.
Through the merger of retail banking networks, Societe Generale and Credit du Nord aim to create a more ‘efficient’ banking entity.
The group is targeting a net cost base reduction of over €350m in 2024 and about €450m in 2025, compared to 2019.
Apart from creating a new French retail bank, the Group has decided to develop its subsidiary bank named ‘Boursorama’.
Boursorama will rely on a full-digital banking model, and serve individual customers, with a goal of onboarding 4.5 million customers by 2025.
Societe Generale informed that important stages of the merger have been completed and the legal merger will take place on 1 January 2023.
Last week, French telecom company Orange finalised a deal to acquire insurer Groupama’s 21.7% stake in its online banking arm Orange Bank.
Concurrently, the telecom group also announced plans to invest €230m in Orange Bank to accelerate its business growth.