Hundreds of positions at stake. Crédit commercial de France (CCF), HSBC’s former retail banking network in France, detailed to it’s employees on Wednesday its strategic plan for 2025 adn 2026, planning around 1,400 job cuts.
This “profound transformation project” aims to ”rediscover the path to enduring growth”, explains the bank, controlled by the American fund Cerberus, in a statement.
the number of agencies will also decrease by a third: it will go from 235 today to 151 in the long term. The bank had already presented a draft of this plan to its employees in early October.
A phase of negotiations
Even if the orders of magnitude were known, “there is still amazement on the part of the employees” at the “dimension” of the plan, explains Bruno Ronsin, elected CFTC. the unions are now engaged in a phase of negotiations until the middle of next year.
For the remaining employees, ”a very difficult transition phase is expected with a management that wishes to maintain the current GDP (net banking product, equivalent to the turnover of the sector, ed.) until 2027″, underlines Bruno Ronsin.
The CCF was resurrected at the beginning of January by the company My Money Group (MMG), controlled by the American fund Cerberus, after the acquisition of the retail banking network in France of the British banking giant HSBC and its portfolio of 800,000 customers, which lasted almost three years.
The new management, embodied by general director Niccolò Ubertalli, was given one year to begin a new phase of the group’s strategy.
Its ambition is to create a “historic French bank on a human scale” aimed at a clientele of liberal and autonomous professionals, such as lawyers or doctors, with assets of 50,000 euros or more.
– What are the potential implications of CCF’s job cuts on the French banking industry?
Interview with Banking Expert Bruno Ronsin on Crédit Commercial de France‘s Job Cuts and Strategic Overhaul
Q: Thank you for joining us today, Bruno. Let’s dive right in—what can you tell us about Crédit Commercial de France (CCF) and its recent proclamation concerning job cuts?
A: Thank you for having me. CCF, which was previously part of HSBC’s retail banking operations in France, announced a strategic plan that includes approximately 1,400 job cuts. This significant reduction represents about 30% of its workforce as the bank looks to streamline operations.
Q: What is driving this “profound change project” that CCF has initiated?
A: The primary goal of this transformation is to ”rediscover the path to enduring growth.” The management, now under My Money Group and Cerberus, aims to restructure the bank to ensure sustainability amid a changing banking landscape. CCF will also see its number of branches cut from 235 to 151, indicating a shift towards more digital banking solutions.
Q: How do you think these changes will affect employees and their morale?
A: Understandably,there’s a significant sense of amazement and anxiety among employees regarding the extent of these changes. Many are grappling with the implications of losing jobs and witnessing the potential for a challenging transition ahead. Management’s insistence on maintaining the current net banking product until 2027 could amplify these challenges, as employees may feel the pressure to adapt quickly to new expectations.
Q: What role do negotiations with the unions play in this transition?
A: The unions have entered a negotiation phase that will last until mid-next year. These discussions are crucial as they will determine the best possible outcomes for affected employees while also addressing management’s strategic goals. Unions will likely advocate for a range of support mechanisms—including severance packages and retraining programs—to ease employee transitions.
Q: CCF aims to target a specific clientele moving forward. Can you elaborate on this strategy?
A: Yes, CCF is set on establishing itself as a “historic French bank on a human scale.” The focus will be on catering to professionals such as lawyers and doctors, who have assets of 50,000 euros or more. This niche approach indicates a significant shift away from a broader retail banking model toward personalized financial services aimed at a specific demographic.
Q: What practical advice would you offer to employees currently facing uncertainty at CCF?
A: My advice would be for employees to remain proactive. They should stay informed about the ongoing negotiations and seek out professional development opportunities,whether through training programs offered by CCF or external resources. Networking with peers and staying connected within the industry could also provide valuable insights and opportunities.
Q: To wrap up, how does CCF’s transformation reflect broader trends in the banking industry?
A: This transformation mirrors a larger trend where banks are increasingly focusing on digitalization, operational efficiency, and serving specialized market segments. The banking industry is adapting to consumer demands for more personalized services while grappling with the challenges posed by emerging financial technologies.CCF’s strategy is a clear response to these evolving dynamics.
Q: thank you, bruno, for your insights into this significant transformation within Crédit Commercial de France. Your expertise is invaluable during this crucial time.
A: Thank you for the chance to discuss these significant developments.