French Banking Giant to Cut 2,350 Jobs

French banking giant Credit Agricole is set to cut around 2,350 jobs, according to reports, as it grapples with the escalating eurozone debt crisis.
French Banking Giant to Cut 2,350 Jobs
The logo of the 'Credit Agricole' bank sign is seen on Dec. 14 in Paris. According to several union sources, the Paris-based bank would cut more than 1,750 jobs in its corporate and investment bank and 600 jobs at its retail bank operations. (Lionel Bonaventure/AFP/Getty Images)
12/15/2011
Updated:
10/1/2015
<a><img class="size-large wp-image-1795082" src="https://www.theepochtimes.com/assets/uploads/2015/09/c135784824_Credit+Agricole.jpg" alt="The logo of the 'Credit Agricole' bank" width="590" height="392"/></a>
The logo of the 'Credit Agricole' bank

French banking giant Credit Agricole is set to cut around 2,350 jobs, according to reports, as it grapples with the escalating eurozone debt crisis.

According to several union sources named in a Reuters report, the Paris-based bank would cut more than 1,750 jobs in its corporate and investment bank and 600 jobs at its retail bank operations. Five hundred of the jobs shed would come from France. And in addition, it may exit many of the countries in which its corporate and investment banks currently operate.

The eurozone debt crisis has roiled financial markets and forced many European banks to shed jobs. UBS AG and Credit Suisse AG already announced job cuts in the thousands. In total, more than 120,000 job losses in the banking sector have been announced by the industry.

Last Friday, credit ratings firm Moody’s Investors Service downgraded the long-term credit rating of the three major French banks—including Credit Agricole—citing financing problems. Also last week, a main European banking industry regulator, European Banking Authority, said that the French banks had all passed a stress test designed to see how they would weather continued distress in the European bond markets.

Experts say that Credit Agricole, together with rival French banks BNP Paribas and Societe Generale, hold the most Italian and Greek debt compared to banks of any other nation. Although the banks have been reducing their exposure, Credit Agricole is exposed to Greece due to having branches in that country.

Credit Agricole’s shares declined Wednesday following the layoff news.