(Bloomberg) -- BNP Paribas SA plans to cut about 20% of jobs at its securities services unit in France over the next three years, according to a union representative.
The bank wants to shed 450 to 550 positions at the business by 2021, Joel Debeausse, a representative for the SNB labor union, said by phone Thursday, citing a June management presentation to staff representatives. This year, about 100 positions will be cut in France while about as many are being created in Portugal, he said
BNP Paribas' custody unit isn't planning any layoffs, the bank said by email, without providing further details on the headcount reductions. It aims to “preserve its competitiveness” in an industry facing increasing competition pressure and low interest rates, it said.
With more than $11 trillion under custody, BNP Paribas' securities-services operations are still dwarfed by U.S. giants such as Bank of New York Mellon Corp. and Boston-based State Street Corp. Custody banks typically provide accounting and record-keeping services for institutional investors. French daily Le Monde reported the job cut plans earlier Thursday.
To contact the reporter on this story: Fabio Benedetti-Valentini in Paris at fabiobv@bloomberg.net
To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, Christian Baumgaertel
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