Over 900 jobs cut at Société Générale as French unions cry foul

French banking group Société Générale has unveiled plans to slash 947 jobs at its head office as part of a cost-cutting programme, a move unions have decried as "an earthquake" for workers. 

French banking group Societe Generale has announced plans to slash 947 jobs at its head office as part of a cost-cutting programme. © AFP/Justin Tallis

Société Générale said Monday that five percent of its head office staff would be cut as part of organisational changes "to simplify its operations and structurally improve its operational efficiency".

In September, the group's new chief executive, Slawomir Krupa, presented a strategic roadmap that included reducing costs by €1.7 billion by 2026 compared to 2022.

The job reductions will be carried out "through internal transfers, end-of-year support or voluntary departures," the bank says.

In a message to staff see, the bank said structural costs had to be reined in to bolster competitiveness and profitability.

One move in that direction is the bank merging its Credit Du Nord network under the SG brand.

The group will cut its branches significantly with 1,450 planned for 2025 down from 2,100 five years earlier.

Major #French #Bank #societegenerale to Cut Around 900 Jobs at #Paris Head Office

France's third-biggest listed bank announced the plans Monday and said the cuts would come through voluntary departures.

The layoffs add to a wave of job losses in the global financial industry –… pic.twitter.com/AGM8uKJf6a

— Michael Ashura (@MichaelAshura) February 5, 2024

Unions slam job cuts

Several unions have expressed concern over cuts which had been leaked to the media without management reacting.

"Where is the company's social responsibility?" asked Michael Plessiet of the CFTC – the French Federation of Christian Workers.

The CGT union has called the move an "earthquake among workers" while the hard left Force Ouvrière predicted further job losses to follow.

• Societe Generale expects to pay €1.1 billion in US sanctions penalties

Fifteen years under Krupa's predecessor Frederic Oudea, Société Générale had seen its fair share of scandal, including the saga of rogue trader Jerome Kerviel, whose deals cost the bank almost €5 billion in 2008 after they turned sour.

Oudea's stewardship also included a €1 billion fine imposed in 2018 by the United States on charges the bank had violated US sanctions on Cuba, Iran and other countries.

Société Générale employs 117,500 people worldwide, including 56,000 in France.