Banking group Société Générale is cutting around 900 positions at its head office in Paris, France, as part of its plans to “gradually and significantly” improve its income-to-cost ratio and in elimination of “hierarchical layers”
The cuts – which are expected to affect approximately 5% of its head office staff “without forced departures” – are part of a new strategic roadmap unveiled by Société Générale last September, which it hopes will result in close to €1.7 billion in gross savings by 2026.
The group claims to have already realised €700 million in cost savings by merging its two retail banking networks in France last month to form SG Bank, as well as digitising activities at its Czech banking subsidiary Komerční banka, and integrating LeasePlan, the fleet management and mobility company it acquired last May, into its global mobility brand Ayvens.
With its action plan in sight, Société Générale has joined a growing list of financial services firms to announce job reductions as a means to initiate cost savings in recent weeks.
Earlier this month we Citi Group announced similar strategic decision to initiate cost savings.
