Societe Generale, a French lender, has confirmed its plans to cut approximately 1,600 investment banking jobs in some of the major countries across the globe as part of a turnaround plan of the company.
Earlier today, SocGen announced the reorganisation. It said that the move would help the lender reach a “more focused business model [that] would enable to strengthen its consistency and the Group’s strategic positioning.”
It said that 750 roles are to be cut in France, pending the consultations with some unions. The rest of the job losses are assumed to fall mainly in New York and London.
The plans to axe the jobs were first reported by Bloomberg last week.
The bank disclosed: “The Group will concentrate its wholesale business model on its areas of strength where it has sustainable and differentiating competitive advantages.”
The job cuts are in the investment banking division of the lender, which has been struggling hard to make money. It also employs approximately 20,000 people across the globe.
The revenue at the investment bank dropped by 19 percent in the fourth quarter of last year following a difficult year. In a report that was released this week, Refinitiv, a data provider, estimated that the investment banking revenue of SocGen plunged by 31 percent in the first quarter of the year to $21 million. According to Refinitiv, SocGen is ranked at the 25th place out of 25 globally in the fourth quarter.
Asian and European investment banks have been struggling to maintain global footprints in the era after the 2008 financial crisis as banks in the United States of America strive to consolidate their positions. Currently, Deutsche Bank is believed to be considering a merger with Commerzbank, its national rival, in an attempt to protect its scale, while Nomura, the Japanese lender, recently announced its plans to cut 100 jobs in London.