September 10, 2008
Mama bank Crédit Agricole has announced that it will be reducing the workforce at it’s investment banking arm Calyon by 500 people, well below the originally predicted 1200. CA said the job cuts in France would be based on “voluntary redundancies”.
For all you detail lovers out there, CA is targeting net income of 1 billion euros for Calyon by 2010, a cost-income ratio of 60% and a return on equity (ROE) of 14-16% on the basis of normalised risk-related costs and Calyon will be closing parts of its structured credit and derivatives activities.
Calyon has posted losses over the last three quarters. Look for job cuts at Natixis next. Fun times for soon-to-be jobseekers!
September 10, 2008
Having lunched today with a few French banker friends of mine, much of our conversation centered around the imminent redundancies at Calyon. With this in mind I thought I’d mention that Crédit Agricole met with trade union reps this morning to discuss the pending job cuts at it’s investment banking arm which should be formally announced soon. I’ll post about it when it happens. Until then, keep a stiff upper lip!
September 8, 2008
With out of work bankers already in ample supply, there looks to be another thousand plus of them on the market to compete against soon-to-be business school grads for finance jobs. Calyon, the oft forgotten stepchild of mother bank Crédit Agricole, is rumored to be slashing 1200 positions this week, but it’s not talking about it. Most of the cuts would occur in London and New York (French banks are reluctant to reduce head count in the home market as they would face the wrath of a rather touchy and reactive legislature).
Given that the credit crunch hit back in August of last year, and that Crédit Agricole announced back in May that they planned on cutbacks at Calyon, it’s surprising that they decided to wait until now to make a move in personnel. Oh well. I guess they didn’t want to ruin anyone’s summer holiday! Good luck to everyone waiting news in New York or London. If things don’t work it’s always a good time to go back and get an MBA…