This new job cut by the French bank Société Générale is part of the vast €450 million savings plan announced in August.

The areas of activity involved

Société Générale is undertaking a further reduction in its workforce. The bank plans to cut between 650 and 700 positions in France. The decision taken by the management on Friday, November 6th, was announced to the trade unions. The biggest cut will be linked to market activities and securities activities with nearly 430 positions reduced. Then come compliance activities (140 positions), human resources (50 positions) and communication (20 positions). Most of the cuts will concern Paris (400 positions) and Nantes in western France (60 positions) with voluntary departures “with support”.

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The need to protect Société Générale’s independence

This further downsizing follows the cutback of 1,600 positions, mainly in corporate and investment banking in 2019. It is part of the €450 million savings plan launched in August to improve the profitability of its corporate and investment banking business. “Management has explained the need for savings to which this new plan will contribute, emphasising the need to protect Société Générale’s independence through its stock market valuation and to deal with the consequences of the health and economic crises,” said the SNC CFE-CGC trade union quoted by the newspaper Le Figaro.

Since January 1st, the Société Générale share has lost 58% of its value, far more than its competitors BNP Paribas (-37%) or Crédit Agricole (-42.5%). As part of its cost-cutting policy, the bank is also taking part in the project to bring its network closer to that of Crédit du Nord. A new entity will be created and should keep the name Société Générale.