SocGen Plans Investment Bank Job Cuts After Trading Slump

(Bloomberg) -- Societe Generale SA is planning jobs cuts at its investment bank to drive down costs after a trading slump in the fourth quarter, according to people with knowledge of the matter.

The French bank is seeking to trim expenses by at least 100 million euros ($114 million) annually and potentially by a much higher amount, with cuts focused on its global banking and investor solutions unit, the people said, declining to be identified because the matter is private. The plans -- including the extent of the cuts -- may be made public as soon as next week, they said.

SocGen is seeking to bolster profitability after warning last month that revenue at its key global-markets business slumped about 20 percent in the final three months of the year because of reduced client activity. The declines are complicating the 2020 growth strategy of Chief Executive Officer Frederic Oudea, who’s seeking to restore investor confidence after paying billions in fines and the surprise departure of a top lieutenant last year.

SocGen Is Said to Plan Urgent Expense Cuts at Investment Bank

The French bank will likely seek to preserve its traditional trading strengths in equity derivatives and structured products, with reductions potentially coming in less profitable parts of its fixed-income activities, the people said. Decisions on the magnitude and scope of the cuts may come when the bank announces annual results on Feb. 7, the people said.

Oudea reorganized his top-management and hired senior traders from Bank of America Corp. last year to help reboot its global-markets business after the shock departure of investment-banking boss Didier Valet. SocGen’s board last year took the step of proposing a new 4-year term for the CEO, and shareholders will vote on that at their annual meeting in May.

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