- Reuters/Benoit Tessier
- Societe Generale will cull up to 700 positions, with hundreds more expected in London and New York, Bloomberg reported.
- The bank shocked investors with a profit warning last year, leading to cost cuts of 500 million euros.
- Bruno Benoit, head of the key fixed income and currencies trading unit, is leaving.
Societe Generale’s rough first quarter is triggering a massive round of job cuts, with Bloomberg reporting that the French bank will cull up to 700 positions, with hundreds more expected in its offices in London and New York.
The cuts will begin as soon as this week, said Bloomberg, citing people familiar with the plans. The bank shocked investors with a profit warning last year, leading to a cost-cutting program to the tune of 500 million euros, while the bank planned a review of unprofitable business units, Bloomberg said.
One high-flying SocGen executive is leaving: Bruno Benoit, head of the key fixed income and currencies trading unit.
Markets tanked in December while volatility spiked, leading to losses throughout global trading floors. That tough environment persisted into the first quarter.
“SocGen has said it sees no near-term improvement in market conditions,” Bloomberg wrote on Friday, adding that the bank’s “global banking and investor solutions unit” has a staff of over 20,000.
The stock fell more than 1% on the news, paring its loss to about 0.9% as of 4.27 pm in Paris (10.27 am in New York).
SocGen declined to comment to Bloomberg.