Societe Generale, one of the biggest French banks, announced plans to fire 1600 employees in the department of corporate and investment banking, Reuters reports.
The bank representatives noted that they took this step in order to increase the company’s profitability, which suffered after the negative financial trend observed during 2018. The bankis acting in accordance with the department’s cost reduction strategy amounted to 500 million euros (about $563 million).
An official statement about this was first made in February 2019 against the background of a sharp market collapse, which led to decrease in the target values of income and profitability.
Severin Cabann, SocGen Deputy Director and Head of Corporate and Investment Banking, noted that since the beginning of February 2019, the bank’s team has analyzed the department’s activities to investigate the possible mechanisms to restore the profitability.