Societe Generale SA to Cut 128 Jobs in Its Global Banking Division
In an effort to making its operation more efficient, Societe Generale plan to cut 128 jobs in its global banking division. For the next five years, The bank has planned to cut 550 jobs.
Reuters cited the email statement sent by Societe Generale union which announce to cut 128 jobs in Global Banking & Investor Solutions division. Previously, the bank announced their plan to cut 7% of its workforce in the retail unit or equal to 2,000 jobs. However, in a meeting with labour union the lender decided to cut 550 jobs retail-banking support functions, such as loans processing through the year 2020.
This job cut is done as a part of cost-saving plan which was announced in 2015. The bank will also reduce its French client treatment centers from 20 into 15 sites. However, the bank has not announced a timeframe for the staff reduction, and Reuters reported that Societe Generale spokesman declined to comment.
Along with its European counterparts, Societe Generale is under pressure to reduce the number of branches as many customers switch to online services. Bloomberg reported that the bank spokesman did not respond immediately to a message left by Bloomberg outside normal business hours.
In an effort to make its operation up to date with the customers demand, Societe Generale has set to adjust its retail operation. The bank planned to reduce its domestic operation by 20% to 1,800 outlets for the next five years. It will also invest €1.5 billion ($1.7 billion) in digital services targeting 100,000 new customers a year.
As the third largest bank in France and the second-biggest in term of market value, Societe Generale SA has a wide array of banking operations which managed in three segments: French Retail Banking, International Retail Banking & Financial Services and Global Banking and Investor Solutions. The three segments manage bank operation in retail banking, corporate and investment banking, financial services, insurance, private banking and asset management.
Business and market in France are late adopters in the online service, making it lagged behind its European counterparts. As the entire Eurozone struggles to grow and reduce inflation, France suffers the most. Business Insider cited the HSBC report that mentioned French old-fashioned labour market is killing its economy.
"In our view, the lack of reform in the labour market goes some way in explaining the underperformance. The most obvious problem is the high level of labour costs, which can be further broken down to the following factors," the report said. The factors mentioned are high levels of taxation, a lack of incentive to work, and weak pay growth.
As the challenge to adapt its operation surmounting, Societe Generale will cut more jobs from its retail banking division. The bank needs to keep its operation up to date with technology demand.