Thursday, April 14, 2016

Why BNP Paribas will eliminate 675 jobs in France – Challenges.fr

Bad news on the employment front: the bank, the largest employer in services in France, began a serious degreasing. BNP Paribas announced by the central committee of business this Thursday, April 14th, he opened a voluntary redundancy plan in its financing and investment banking (CIB) on 675 jobs over three years. CIB weighs 6,000 jobs in France. internal transfers will be offered.

This decision is a direct consequence of the savings that the establishment of the rue d’Antin has announced as part of its strategic plan on the horizon 2019. Alain Papiasse, deputy general manager of the group promised February 5 to make a billion in savings this deadline. Some 200 projects have been launched to achieve this. The industrialization of IT and business process needs alone, reduce the cost of 365 million euros, including limiting the size of these tasks. The BNP Paribas announcement closely follows that of Société Générale, who presented to unions on April 4, a plan to cut 128 positions, including 86 in the direct market activities (brokers, analysts, traders …) “without dismissal or forced departure”.

Lourdes prudential requirements

at the origin of these cuts, the uncertainties in the financial markets. But above prudential requirements increasingly impressive for institutions. Since the collapse of Lehman Brothers in 2008, European regulators are forcing banks to raise capital increasingly important meet their commitments, particularly on equity markets. Banks that want to remain active in this sector must therefore “comb” their portfolios by keeping only the most profitable assets and cut production costs, including human resources.

Another contract social at the French established in he banks limit the damage. At the head of Credit Suisse since July 2015, the Franco-Ivorian Tidjane employs for its part much more brutal methods. The savings plan announced in October by 3.2 billion was raised in late March, after the wipes on financial markets, to 4 billion by 2018. And positions of deletions increased from 4,000 to 6,000 people by the same date, 12% of bank’s global workforce. The aim of assets under management for Credit Suisse market activities division was reduced from 85 billion francs (78 billion) to 60 billion Swiss francs. Paradoxically, BNP Paribas has, for its part, not lower the sails on its BFI, despite the separation plan announced. She promised an increase in revenues of 4% by 2019, which should enable it to gain market share at a time when competitors are reducing their activities.



Job Destruction

Faced with these restructuring undertaken in the BFI, the model of “universal bank” in French, working on both markets and retail banking, will not help. For network activities are also affected by violent double shock: low interest rates begin margins and a rise of online banking that empty agencies. In a study published September 29, 2015, McKinsey estimates that in retail banking, the fintechs could devour, 2025, up to 60% in revenues from traditional institutions worldwide. Société Générale has stopped a plan to close 400 branches by 2020, leading to the elimination of 2,000 positions in terms. BNP Paribas is now managed to proceed as discreetly: no global announcement, the institution has nonetheless closed more than 250 branches last five years

While the banking sector was. until 2011 net creator of jobs, the overall enrollment decline is hopelessly engaged. Over the past four years, more than 12,000 full-time equivalent have already been destroyed, an average reduction of 1% of the workforce annually. Today, this movement accelerates.

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