SocGen to cut jobs and close branches in 2020 plan
Société Générale has unveiled plans to cut costs and push itself forward towards digital banking – translation: the closure of branches and job cuts in France by 2020.
The plan, which will take course over a three-year period, involves the pursuit towards expanding its digital banking capabilities. However, in details released by SocGen, it’s revealed that the result of such a move means the cutting of 900 jobs and closure of 15% (from 2,000 to 1,700) of the bank’s branch network.
Furthermore, SocGen is expecting to consolidate its back office centres from 20 to 14, and the automation of 80% of its front-to-back processes. Not looking good, considering over 2,500 jobs were cut last year.
With disruption caused by the increasing rise of start-ups, digital tools and regulations. Its 2020 plan will maintain its target of 3% revenue growth per year; pushing towards €3.6 billion revenue and an equity return of 11.5%.
With the share price of the bank dropping more than 8% so far this year, it could prove difficult – rising a lowly 0.9% in early trading in Europe this week.
With additional plans to dispose of its non-core businesses, accounting for roughly 5% of its capital requirements. If all goes as predicted, SocGen says it’s seeking to reach an annual cost base of €17.8 billion by 2020, helped by a €1.1 billion savings plan.