Soc Gen chief Frederic Oudea announced frantically that he would cut jobs, raise 4 billion Euros, and cut costs yesterday.Now we have a number: 2,000, 13% of the firm’s workforce.
The newspaper Kommersant added that the reductions will aim to increase the profitability of the firm’s Russian business, according to SNL Financial.
SocGen added a lot of employees through acquisitions in the past few years. SocGen’s Russian assets include: Rusfinance Bank, DeltaCredit Bank, Banque Société Générale Vostok and Rosbank. So it sounds like that’s where some of the cuts will be. Employees in Romania, Egypt and Poland will also be cut, according to papers Rzeczpospolita and Puls Biznesu.
French banks Soc Gen, Credit Agricole, and BNP Paribas are having a tough time this week after there were hints that Moody’s would downgrade them. There was a big sell-off yesterday after the announcement. Today their shares are back up.
However some still say that the government needs to intervene in French banks because they have so much exposure to Greece, which many expect to default on its debt. France has $56.7 billion in exposure to Greek creditors. The G7 said they are committed to offering that liquidity to banks as needed.
Layoffs are just one side of the story on Wall Street. Job perks are getting annihilated >
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