Posted on Jul 6, 2020 at 6:19 p.m.
HSBC reduces the wing in Paris. The French subsidiary announced on Monday to its employee representative bodies a savings plan providing for 235 departures on a perimeter of 678 positions in corporate banking, investment and markets.
This measure comes as the group seeks to sell your personal bank in France , which includes some 250 branches and 3,500 to 5,000 employees depending on the scope chosen. It is part of a historic restructuring, which provides the elimination of 35,000 jobs worldwide, out of a total workforce of 235,000 employees.
The plan takes place three years after a wave of layoffs of more than 600 positions in the former Crédit commercial de France (CCF). “Its principle would be to reallocate capital and resources in the face of the structural challenges of this activity, focus on profitable activities, reduce the cost base and defend our competitiveness”, the bank said in an internal press release.
HSBC’s efforts, if they are particularly radical, underline the difficulties of the investment banking profession, particularly in Europe. Low rates and tighter regulation have made activity less successful.
Even before the pandemic, Deutsche Bank , Societe Generale, BNP Paribas, UniCredit, Santander or Barclays and Commerzbank had indicated their intention to save money.
« Hub » en Europe continentale
At the same time, HSBC is reaffirming its strategy in France. “We are creating an integrated European continental bank anchored in Paris, connecting our customers to the global HSBC network and providing access to Continental Europe for HSBC customers worldwide”, said management. As part of Brexit, the French subsidiary has integrated several European branches.
The fact remains that his initial ambitions – which foresaw the transfer of 1,000 bankers from London to Paris – were not completely followed up.
The new tightening plan also provides for the transfer of certain structured products activities (interest rate and equity derivatives) from Paris and London to Hong Kong, the group’s historic cradle.
In France, the bank remains active with businesses and has even established itself as a major provider State Guaranteed Loans (PGE) .
The process of selling its retail bank, which interests Oddo and La Banque Postale in particular, is continuing. Initially in the ranks, Societe Generale would now be further behind.