Tuesday 09 April 2019 9:37 am | Updated: Monday 03 June 2019 1:42 am

Societe Generale to cut 1,600 jobs following review of investment banking unit

French bank Societe Generale has revealed plans to cut 1,600 jobs, mostly from its investment banking division, in a bid to boost profits.

The bank said around 750 of those jobs would be lost in France, while bankers in London and New York could also be made redundant, according to reports.

It comes after SocGen said in February it would look to cut €500m (£431m) from its global banking and investor solutions business after lowering its 2020 targets in the wake of tough market conditions.

Following a review the bank said today it would close its over-the-counter commodities business as well as its proprietary trading unit and reduce the size of its fixed-income division.

Two business units in its financing and advisory arm will also be merged.

In total close to 1,200 jobs could be lost in its global banking and investor solutions business, according to reports.

Revenue from the SocGen’s fixed income, currencies and commodities business plunged 28.8 per cent to €366m in the fourth quarter of last year, with the bank citing market conditions created by political tensions in Europe and the US-China trade war.

Chief executive Frederic Oudea said the economic, financial and regulatory was set to be “less favourable” in the coming years than it initially seemed.

Investment banks have been gearing up for a difficult first quarter results season amid a global economic slowdown and Brexit uncertainty.

UBS chief executive Sergio Ermotti said the opening three months of the year had been “one of the worst first quarters” in recent history.

JP Morgan also warned first quarter trading revenue would fall by a “high teens” percentage and analysts have estimated Barclays’ revenue will fall 10 per cent.

In the first set of results at the end of last month, Jefferies reported a 36 per cent drop in investment banking revenue, which chief executive Rich Handler branded “sub-par.”