BNP weighing up to 150 job cuts in Geneva to slash costs

BNP Paribas is considering eliminating as many as 150 jobs in Geneva in a bid to cut costs and streamline its operations, according to sources familiar with the matter.

The French lender is consulting with staff representatives on the move and the process will last for weeks, said one of the sources, who asked not to be identified discussing personnel. It is too early to say what roles might be effected but it may include back-office and IT positions.

The bank has more than 1,000 employees in Switzerland across Geneva, Zurich and Lugano, according to its website. It’s possible the number of jobs cut could be smaller and some people could be relocated within the business, the source said.

In an e-mail, the lender confirmed it has initiated consultations with its staff commission in Geneva “as part of the continuous adaptation of its organization”, but declined to share details.

The reductions are part of chief executive officer Jean-Laurent Bonnafe’s efforts to seek an additional 400 million euros (S$581.4 million) in cost savings to offset revenue headwinds. The Paris-based firm leaned on lower expenses to boost its first-quarter profit that beat analyst expectations.

BNP Paribas is among a raft of global lenders that are slashing their workforce with the broader aim of cutting costs. This week, Bloomberg News reported that Barclays started culling employees in global markets, investment banking and research as the British bank embarks on a £2 billion (S$3.4 billion) savings drive envisaged by CEO CS Venkatakrishnan. HSBC Holdings began a new round of reductions in investment banking in Asia last month.

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BNP Paribas is also eyeing opportunities in Switzerland following the takeover of Credit Suisse by UBS Group, and is planning to develop its corporate and institutional banking and wealth management in the country.

The bank’s “ambition in Switzerland is unchanged: we continue to implement our strategic plan 2025, pursuing our growth at the service of Swiss clients and the Swiss economy”, BNP Paribas said. BLOOMBERG