Societe Generale, France’s third-largest listed bank, is set to reduce its workforce by approximately 900 jobs in the country this year as part of cost-cutting efforts to enhance profitability. The job cuts will primarily target IT and support functions at the bank’s headquarters in the La Defense business district in Paris. The reductions are expected to be implemented through voluntary departures, with the total job cuts representing less than 2% of the bank’s French workforce, which currently employs around 52,000 people. Societe Generale aims to achieve cost savings of about 1.7 billion euros by 2026, with CEO Slawomir Krupa focused on revitalizing the bank’s stock price and overall financial performance.
Key Points:
1. Job Cut Details: Societe Generale plans to cut around 900 jobs in France during the current year, targeting IT and support functions at its headquarters in Paris, according to sources familiar with the matter. The cuts will be executed through voluntary departures.
2. Proportion of Workforce: The estimated job cuts represent less than 2% of Societe Generale’s total French workforce, which stands at approximately 52,000 employees. The bank employs around 112,000 people globally.
3. Cost-Cutting Measures: CEO Slawomir Krupa, tasked with revitalizing the bank’s stock price and profitability, aims to achieve cost savings of about 1.7 billion euros by 2026. Approximately 40% of these cost cuts are expected to result from new gross savings beyond previously announced synergies, including those from the merger of the bank’s two retail brands in France.
4. Voluntary Departures: The job cuts are anticipated to be implemented through voluntary departures, aligning with Societe Generale’s efforts to streamline its operations and improve efficiency.
5. Global Workforce: Societe Generale’s global workforce is around 112,000 employees, with the bank maintaining a significant presence in France and internationally.
6. Earnings Report: The bank is scheduled to report its full-year earnings on February 8, providing further insights into its financial performance and the impact of cost-cutting initiatives.
Societe Generale’s decision to reduce its workforce in France is part of a broader strategy to enhance efficiency and navigate economic challenges while focusing on long-term financial sustainability.
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Credit: Mathieu Rosemain