The bank could cut hundreds or even thousands of jobs at its global banking and investor solutions unit, including roles in support functions such as finance and human resources.
Sunday 24, February 2019
(Bloomberg) --Societe Generale is drawing up plans to cut jobs at its investment bank and find a partner for its cash-equity business in a bid to offset increasing cost pressure from regulation, people familiar with the matter said.
The bank is still weighing up which parts of the business would bear the reductions. SocGen’s GBIS unit has more than 20,000 employees and the Chief Executive Officer Frederic Oudea has said it’s too soon to comment on any headcount decisions.
The Paris-based group is seeking to cut EUR 500 million ($567 million) of costs and review less profitable investment-banking activities after a gruelling fourth quarter. The organisation said earlier this month that the reductions would focus on some fixed-income and currencies activities.
Oudea reorganised his top management and hired senior traders from Bank of America Corp. last year to help reboot the global-markets business after the shock departure of investment-banking boss Didier Valet. Deputy CEO Severin Cabannes is now in charge of the GBIS unit and is readjusting a business plan that was crafted under Valet in 2017, when economic and market conditions were better.
SocGen’s board last year took the step of proposing a new four-year term for the CEO, and shareholders will vote on it at their annual meeting in May.