French bank Societe Generale said that it will cut 3,700 jobs between 2023 and 2025. This is as it merges its retail network with that of its unit Credit du Nord. Also, it added that there would be no forced redundancies. The new retail bank targets a headcount of 25,000 employees. The job cuts will come about through natural attrition. This is estimated at 1,500 a year until 2025.
The merger, as per the announcement in September, will create a single bank with one branch network, one head office and one IT system serving nearly 10 million clients. SocGen is France’s third-biggest listed lender, as per the regrouped network. They will have around 1,450 branches in 2025. Also, the regrouping of the branches will not involve an exit from any town.
The bank said that the restructuring is a pre-emptive approach to the multiple challenges facing retail banks. And mainly it includes low interest rates, competition, new entrants and an acceleration in digital use due to the pandemic.