BNP Paribas to cut 500 jobs at securities services arm in France
(Adds comments from union, BNP Paribas)
By Inti Landauro
PARIS, Aug 22 (Reuters) - BNP Paribas plans to cut
around 500 jobs at its securities services arm in France, a
union representative said on Thursday, as the bank seeks to
reduce costs and retain competitiveness.
France's biggest bank said all job cuts at BNP Paribas
Securities Services would be through voluntary redundancies over
the next three years. Some of the posts will relocate to
Portugal, said Joel Debeausse, deputy national delegate for the
SNB union at BNP Paribas.
"It is part of a preservation of BNP Paribas Securities
Services' competitiveness, which faces an increased pressure
from world competition and low interest rates," the bank said in
BNP Paribas Securities Services offers asset services and
custodian services to asset managers.
In February, BNP Paribas announced a 350 million euros
cost-cutting plan on its corporate and investment banking
division, which comprises securities services, after a weak
fourth quarter. The business has improved in the first half of
the year, but Yann Gerardin, head of corporate and investment
banking, has said it would remain under pressure.
Big European banks such as BNP Paribas have relied more on
volatile corporate and investment banking after years of
rock-bottom interest rates have limited returns in retail
As part of the cost-cutting programme, BNP Paribas has sold
off or closed unprofitable or subscale businesses, as it has
already done with proprietary trading and U.S. commodities.
BNP Paribas has previously announced plans to cut jobs in
other units including its retail banks in Belgium and Poland.
(Reporting by Inti Landauro;
Editing by Sudip Kar-Gupta/Jean-Michel Belot/Susan Fenton)
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