Societe Generale has announced plans to cut around 1,600 jobs after last year’s poor performance.
The Societe Generale cuts will mainly impact its corporate and investment banking arm. The reductions will include nearly 1,200 positions at the global banking and investor solutions division.
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In addition, around 750 jobs will vanish in France. The bank did not give out further details on where else the cuts would occur.
In February, Societe Generale announced it would cut €500m ($563m) in costs at its corporate and investment banking arms. This was due to the poor performance witnessed in its fourth quarter results.
A statement from the bank read: “As announced in February 2019 during the Group’s annual results publication, and following the review of the Global Banking & Investor Solutions business portfolio, Societe Generale plans some strategic adjustments in order to always meet its customers’ expectations while structurally improving its profitability.”
Societe Generale job cuts
The investment banking arm is the main target of the cuts. However, the bank also highlighted its second strategic adjustment will cover the head office of the International Retail Banking & Financial Services activities.
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By GlobalDataSociete Generale will therefore streamline and integrate services dedicated to the international retail banking Business Units. This will ultimately improve the overall operational efficiency and agility.
These changes have been submitted today for consultation.
The statement continued:
“The contemplated organisational projects would be implemented following the consultation with the French employee representative bodies, which is expected to be completed by the third quarter of 2019.
“In total, these projects could lead to a reduction of close to 1600 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, 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.”
