The job cuts will be routed through voluntary redundancies with employees having the option to relocate to other posts in Portugal.
In a statement, BNP Paribas disclosed, it would cut nearly 500 jobs in France from its securities services business.
The move comes midst BNP Paribas’ efforts to boost its competitiveness while slashing costs.
It said, all job cuts would be through voluntary redundancies over the next three years. On a positive note, employees who be leaving the company in France could opt for posts in Portugal, said Joel Debeausse, deputy national delegate for the SNB union at BNP Paribas.
“It is part of a preservation of BNP Paribas Securities Services’ competitiveness, which faces an increased pressure from world competition and low interest rates,” said BNP in a statement.
BNP Paribas Securities Services offers asset services and custodian services to asset managers.
Earlier this year in February, BNP Paribas had announced a 350 million euros cost-cutting plan for its corporate and investment banking division, this included its securities services business, following a weak fourth quarter. Although the business gained momentum in the first half of the year, Yann Gerardin, head of corporate and investment banking, stuck to his erstwhile decision saying those businesses still remain under pressure.
Incidentally, following years of rock-bottom interest rates, which have limited the rate of returns in retail banking, large European banks, including BNP Paribas, have tended to rely on volatile corporate and investment banking.
As part of its cost-cutting program, BNP Paribas has already sold off /shuttered or scaled down its low profit businesses. The bank had previously announced plans to cut jobs in other units including its retail banks in Poland and Belgium.