Type
Internal restructuring
Country
France
Region
Location of affected unit(s)
Sector
Financial Services
Financial And Insurance Activities
Financial Service Activities, Except Insurance And Pension Funding
64.19 - Other monetary intermediation

750 jobs
Number of planned job losses
Job loss
Announcement Date
9 April 2019
Employment effect (start)
1 June 2019
Foreseen end date
30 November 2019

Description

Société Générale bank has announced the loss of 1,600 jobs worldwide, including 750 in France. In France, 504 positions will be eliminated in its Corporate and Investment Banking (BFI) division. Such a restructuring plan in these businesses is unprecedented since the 2012 crisis. After a series of disappointing quarters, marked by revenues growing too slowly or even falling sharply, BFI was unable to recover its profitability.

The bank's headquarters in Paris will be restructured and the organisation of retail banks and international financial services simplified, resulting in the loss of 171 positions in France. All the measures announced are aimed at reducing the bank's consumption of equity capital. The 750 employees whose positions will be cut will be able to benefit from the terms of an agreement negotiated with the group's four trade union organisations (CFDT, CFTC, CGT and SNB). Thus, Société Générale will propose to the employees concerned a reemployment within its other divisions and/or a voluntary departure. Those who choose to leave will receive one month's salary for each semester of seniority, up to 15 years of service. For the oldest employees - over 20 years of service - variable compensation will also be taken into account. An employee who is within 36 months of retirement may suspend his employment contract during this period but still receive 70% of his gross remuneration, subject to certain conditions. 

On 28 November 2017, the bank has announced to investors the additional closure of about 100 branches with 900 job cuts.  In September 2015, Sociéte Générale announced that it was going to cut 420 positions in France by the end of 2017 in the framework of a costs saving programme of €850 million in the bank’s corporate and investment banking sectors. A previous restructuring also affected these activities in 2013. The workforce of the bank has decreased over the last few years due to restructuring plans announced at a worldwide level in 2012 and 2013 ; and in France, in 2010, mid 2013 and end of 2013


Sources

Citation

Eurofound (2019), Société Générale, Internal restructuring in France, factsheet number 97537, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/97537.