Layoffs Watch '13: SocGen

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The French are planning cuts, but only for those who want 'em. Everyone else can stay.

The French bank Société Générale announced on Tuesday that it was planning a new-cost cutting drive that would result in hundreds of job losses in France, as its first-quarter net income fell sharply. The bank said first-quarter net income fell 50 percent, to 364 million euros ($476 million), from the period a year earlier. That was well below the 674.6 million euro profit expected by analysts surveyed by Reuters.

Société Générale, the second-largest French lender, said it planned 900 million euros of cost reductions through 2015, adding to the 550 million euros of cuts last year. Severin Cabannes, the bank’s deputy chief executive, told CNBC television that the bank was in talks with its unions about eliminating 600 to 700 jobs at its headquarters, but added that there would be “no forced layoffs.” French companies, faced with tough restrictions on firing employees, typically use buyouts and early retirement programs to cut jobs.

[Dealbook]

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