The crisis is hitting Europe's banking system – Two French banks reveal sweeping job cuts

Pic.: You Tube

French banking heavyweights Societe Generale and BNP Paribas revealed sweeping workforce reductions, highlighting the mounting pressure on the sector to cut costs during a period of economic and political turbulence.

Societe Generale said it will eliminate 1,800 jobs in France by 2027, stressing that the reductions will occur through natural attrition rather than direct layoffs. The bank aims to avoid expensive redundancy programs, according to media. The lender, which employs about 40,000 people in France, had already cut 900 positions at its Paris headquarters in 2024. That move was part of a broader efficiency drive led by CEO Slawomir Krupa, who told media last March that “nothing is sacred” when it comes to operating the bank more efficiently. The institution continues to face the fallout from past setbacks, including a €3.3 billion ($3.9 billion) hit from its 2022 exit from Russia following the escalation of the Ukraine conflict.

Meanwhile, BNP Paribas will reduce around 1,200 jobs at its asset management unit by 2027, media reported, citing a union source. The cuts represent about 20% of the division’s workforce and follow the bank’s acquisition of AXA Investment Managers last year, which expanded its global portfolio but triggered restructuring.

The downsizing comes as France struggles with weak economic growth and rising debt. The country’s debt-to-GDP ratio reached 117.7% in 2025, a modern-era record, according to Eurostat, and is projected to climb to 120% by 2027. Political deadlock has further complicated the outlook. Since losing its parliamentary majority in 2024, the government has repeatedly relied on Article 49.3 of the constitution to push through legislation. Earlier this week, the measure was invoked to pass the 2026 budget without a parliamentary vote.

The announcements mark one of the most significant employment shake-ups in France’s banking sector in recent years, reflecting both global market pressures and domestic political instability.

BNP Paribas SA is seeking to eliminate about 1,200 positions as it completes the integration of Axa Investment Managers, Bloomberg reports.

The number is a starting point for talks with unions over the coming weeks about a voluntary redundancy plan, according to people familiar with the matter. The plan, which was first reported by the newspaper Les Echos, could still change, they said, asking not to be named discussing the private information.

France’s biggest lender bought the unit from insurer Axa SA in 2024 for about €5 billion ($5.9 billion), creating one of Europe’s largest money managers with about €1.6 trillion in overseen assets at the end of September. Europe’s biggest funds firm is Amundi SA, owned by BNP Paribas’ domestic competitor Credit Agricole.

read more in our Telegram-channel https://t.me/The_International_Affairs