Shares in Société Générale rose more than two per cent on Thursday after the French banking group confirmed plans to cut 1,800 jobs in France by the end of 2027, as part of a broader internal reorganisation.
The proposed workforce reduction would be carried out through natural attrition, rather than voluntary departure or early retirement schemes, according to a statement from the CGT union. By early afternoon trading in Europe, Société Générale shares were outperforming the broader market amid a continent-wide rally.
The job cuts follow the recent signing of a new employment agreement covering the 2026–2028 period, and would result in a net reduction of roles from a French workforce of approximately 40,000 employees. Management is expected to formally submit the restructuring file to unions later on Thursday, alongside a wider internal communication.
Union Criticism Over Process and Timing
In a statement issued after meetings with senior management, including the group’s secretary general Alexis Kohler, the CGT criticised the timing and method of the announcement.
The union said staff representatives were summoned individually to be presented with the plans rather than being consulted in advance, describing the approach as neither transparent nor constructive. It added that it had been seeking discussions on the reorganisation since mid-2025.
The CGT also argued that management moved ahead with the restructuring only after key employment safeguards contained in the 2019–2025 employment agreement had been dismantled, while other arrangements, including teleworking provisions, were being rolled back.
Management Pushes ‘New Phase’ Strategy
According to the union’s account, management justified the reorganisation as a necessary “new phase” following the achievement of key strategic targets set out at the bank’s capital markets day.
Société Générale has framed the plan as part of a wider transformation aimed at simplifying structures, reducing layers of hierarchy, and narrowing managerial spans of control. The bank says the strategy prioritises internal mobility, retraining, and limited external recruitment, and that a natural attrition rate of around five per cent per year makes additional support measures unnecessary.
Scope of the Restructuring
The reorganisation affects most of Société Générale’s French retail and support operations, although some business units have been excluded after undergoing restructuring in recent months.
Within Société Générale Réseau France (SGRF), the plan includes 650 local job cuts and a further 340 reductions at national headquarters. The network would be reorganised from 11 regions to nine, with regional boundaries redrawn and greater decision-making authority delegated at local level.
According to the CGT, SGRF human resources director Valérie Migrenne told representatives that all affected employees would be offered roles aligned with their skills and local employment areas, with changes managed progressively and on an individual basis.
Management has also outlined plans to centralise certain functions, establish national platforms for areas such as fraud prevention, strengthen cooperation between digital and data teams, and consolidate training operations under SG University.
Wider Industry Pressure
The restructuring comes amid sustained pressure on French banks to cut costs and streamline operations, driven by rising regulatory demands, accelerating digitalisation, and slower growth in traditional retail banking.
Société Générale has already implemented several restructuring rounds in recent years, including job reductions in investment banking and asset management. Trade unions, however, continue to warn that heavy reliance on attrition risks increasing workloads and weakening service quality, particularly within regional branch networks.
The restructuring file is due to be formally submitted to unions on January 22, with an expert review expected to follow within a week. Consultations with employee representative bodies are set to continue, with management targeting an exceptional plenary meeting by the end of April.
