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Societe Generale (SCGLY) to Cut 640 Jobs Amid Restructuring

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After recording huge losses in the equities business in the first half of the year, Societe Generale Group (SCGLY - Free Report) plans to restructure its business and hence, has announced that it will cut almost 640 jobs in France.

Notably, in August, the company’s CEO, Frederic Oudea, reshuffled top management positions after witnessing losses in two consecutive quarters.

Now, Oudea wants to reduce risk and hence, is shifting toward simpler products. The redundancies, which are expected to affect the bank’s securities business as well as compliance and risk operations, are part of Oudea’s plan to stop trading in complex structured equities products.

In fact, the job cuts and the restructuring complement Societe Generale’s decision to lower expenses by 450 million euros within its capital markets division by 2023.

Nevertheless, these redundancies do not include any forced cuts. Instead, the bank is focusing on voluntary departures and will redeploy employees into new roles. The plan is, however, subjected to discussions with employee representatives.

Notably, after witnessing a collapse in equities revenues earlier this year, the company saw a rebound in the same in the third quarter. Both equities and fixed income trading businesses performed better than expected.

Shares of the company have lost 47% so far this year compared with a decline of 24.4% recorded by the industry.





Societe Generale currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few better-ranked stocks from the same space are mentioned below.

The Toronto-Dominion Bank (TD - Free Report) currently carries a Zacks Rank #2 (Buy). Over the past 30 days, the Zacks Consensus Estimate for the company’s current fiscal year earnings has remained unchanged. Its share price has increased 1.8% in the past three months.

The Zacks Consensus Estimate for UBS Group AG’s (UBS - Free Report) 2020 earnings has been revised 19.7% upward over the past 30 days. The Zacks Rank #2 stock has appreciated 9.8% in the past three months.

Royal Bank of Canada’s (RY - Free Report) earnings estimates have been unchanged for the current fiscal year over the past 30 days. Its share price has increased 2.2% in the past three months. The company currently carries a Zacks Rank #2.

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