IVY Plus Blog

SocGen Layoffs Continue Among Chaos

 SocGen former home of rogue trader Jerome Kerviel who lost 4.9  billion euros in trading in 2008 is reviving their generous redundancy offering of 2012 this year.  They are targeting 600-700 employees based in France as much of their US operation has been reduced and there is a perception of protecting French jobs first.  Yahoo news reports – 

"In 2012, SocGen encouraged its bankers to take voluntary redundancy by paying them a minimum of €30k and a maximum of €300k, depending upon their pay and length of service. The scheme was so generous that it ended up massively oversubscribed: 2,200 people wanted to leave SocGen, but only 800 were accepted. " 

You can find more here – http://yhoo.it/19ePC9h

Dealbreaker reports – http://bit.ly/19eSByv

"The French bank Société Générale announced on Tuesday that it was planning a new-cost cutting drive that would result in hundreds of job losses in France, as its first-quarter net income fell sharply. The bank said first-quarter net income fell 50 percent, to 364 million euros ($476 million), from the period a year earlier. That was well below the 674.6 million euro profit expected.

Société Générale, the second-largest French lender, said it planned 900 million euros of cost reductions through 2015, adding to the 550 million euros of cuts last year." 

In 2011, Zerohedge claimed that Socgen was levered up 50 times with only 2% of tier 1 assets – http://bit.ly/pgVmNq

 Likewise, e-financial careers reports that the 4th quarter of 2012 was not good for SocGen either – http://bit.ly/WlUeGS

"Societe Generale reported a larger-than-expected fourth quarter loss of 476 million euros and said it would reorganize around three businesses: retail banking in France, retail banking and financial services internationally and CIB, private banking and asset management.

The bank didn’t say whether its restructuring would involve job losses, however, the head of retail banking in France, Jean-François Sammarcelli, said at a press conference today that the group plans to close “a few dozen” of its 3,250 bank branches in France. Last year, SocGen cut 1,600 jobs worldwide in its CIB division. It employs 160,000 worldwide."

Meanwhile, Glassdoor.com, an inside scoop website with anonymous feedback from workers at SocGen reports that existing New York employees think there is little job security, less pay than rivals and a two-tier career track for those who are French speaking and those who are not.  Even though English is generally recognized internationally as the language of business and moreso banking, some employees report that as many as half of their communications received are in French.

More here – http://bit.ly/14f5iZl 

 

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