Societe Generale is drawing up plans to cut thousands of jobs at its investment bank, as it looks to cut costs in less lucrative areas of its business, Bloomberg has reported.

Sources say the French bank is also looking to find a partner for its cash-equity business, as it tries to counter increasing regulatory pressure and costs.

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SocieteGenerale has thus far resisted the trend of setting up a joint venture for cash equity research, but it appears this will soon change.

The bank’s search for a partner for its stock brokerage business may take some time, but the preference is reportedly towards keeping it within the group.

Societe Generale cutting costs

SocGen is seeking to cut €500m of expenditure and review areas of the business that are less profitable.

Those affected by the job cuts at its global banking and investor solutions unit (GBIS) are thought to include support roles in finance and human resources.

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Societe Generale declined to comment when contacted by PBI.

When Societe Generale announced its Q4 2018 results earlier this month, CEO Frederic Oudéa said: “In an economic, financial and regulatory environment that looks set to be less favourable and even more complex over the next few years than anticipated a year ago, we have decided to adapt the execution of our plan and our financial trajectory.

“In a more uncertain economic environment, we will continue to work on our operating efficiency with an additional plan to reduce costs in Global Banking & Investor Solutions and we are further prioritising cost control.”

The group’s Q4 2018 results included a fall of €232m (6%) in asset and wealth management from a year previous.

The news today has triggered a slight rally for Societe Generale’s recently free-falling share price, reaching a high of 25.44 today, a 4% increase from the 5-year low that it experienced last week.