Posted on Nov 22, 2020 at 3:03 p.m.
Containment does not slow down Natixis’ desire to refocus. On Thursday, in an online meeting, the BPCE subsidiary announced to its London teams that it was going to reduce by about 50 jobs out of 350 its workforce in the British capital. A decision which mainly concerns trading, in particular equity derivatives.
Of this total, around twenty positions will be permanently abolished. Thirty will, for their part, be open in Paris in the team combining the equity and interest rate businesses with a view to centralizing these activities in France, confirms the bank following information from Bloomberg. These will either give rise to transfers from London or to recruitments on site in France.
During the presentation of the third quarter results, the CEO of Natixis, Nicolas Namias, declared his willingness to intervene now in less complex and less risky product lines in equity derivatives, and to switch his trading teams towards more stable sources of income.
The bank has recorded 272 million euros in losses since January on equity derivative businesses due to the suspension or cancellation of dividends linked to the Covid. At the end of 2018, the BPCE subsidiary also suffered a market crash of 260 million euros in Asia due to a problem with complex equity derivative hedges.
The bank will divide by more than 8 the number of customers it serves in equity derivatives, to around 50, by focusing on the most traditional, such as companies and the group’s two networks, Banques Populaires and Caisse d’Epargne. .
Bank says it is ready for Brexit
Five years ago, that is to say before the outbreak of Brexit, the youngest of the French investment banks had put the double bites on London . Natixis had announced that it wanted to recruit 25 people there in its market activities, in the equities, bonds and commodities businesses, mainly as sellers on structured products. An effort then even greater than that implemented for its entity in New York and its other international presences.
Two years before, it had in fact failed to convince its French employees to accept a transfer to take 87 open positions in the British capital within its market activities, because of the departure conditions offered. Employees in the interest rate business, the main ones affected by the offer, had to resign and then go under a local contract, less advantageous.
This new Natixis workforce arbitrage comes as the banks must finalize their transfer of employees and balance sheets in view of Brexit. The BPCE subsidiary, which is present in London as a branch, says it is ready a few weeks before the deadline. The European Central Bank, for its part, last Wednesday put pressure on British banks who want to continue to exercise on the European continent: the pandemic, she threatened, cannot serve as an excuse for relocations required.