Societe Generale's Russian branch to slash 1,500 jobs

Societe Generale's Russian branch to slash 1,500 jobs

Friday, February 13, 2015 3:41 pm

Rosbank: to cut 1,500 jobs

Rosbank: to cut 1,500 jobs

French bank Societe Generale plans to cut 1,500 jobs this year at its Russian subsidiary Rosbank, a spokesman told AFP on Friday.

The Russian unit, impacted by the worsening economic situation in the country, cut 1500 jobs in 2014 as a part of a plan to improve profitability.

“An effort of the same magnitude is planned this year,” a Societe Generale spokesman said.

The planned job cuts for 2015 was earlier reported by Bloomberg News.

Rosbank had 20,500 employees at the end of 2014 and operates mainly in retail banking, mortgage lending, and consumer credit segments.

While presenting its annual results Thursday, Societe Generale said it anticipated a loss for its Russian operations in 2015 due to needing to make provisions to account for increased risks.

Societe Generale ended up with a 538 million euros loss last year for Rosbank, largely due to a write-down of 525 million euros in the valuation of the business.

Russia’s economy has been hit hard by tumbling oil prices and Western sanctions over the conflict in Ukraine.

This has in turn affected foreign companies operating in the country.

For 2015, Societe General forecasts a four percent decline in Russia’s gross domestic product with inflation of 14 percent.

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