The merger between Credit Agricole and Credit Lyonnais was also going to throw up a number of casualties. And it was known early on that the investment banking divisions of the firms were likely to be savagely cut back. Thanks to Dow Jones Newswires, we now know what the job losses are likely to look like.
A merger of this kind only makes sense if there are major costs savings to be acheived by combining various units and divisions. The banks have already said that they plan to cut around 4,600 jobs between now and mid-2006. According to an 'internal briefing paper' obtained by Dow Jones, 60% of these jobs look likely to come from the banks' investment banking divisions - that's 2,800 jobs.
No compulsory redundancies are said to be planned in France, although the banks apparently intend that 2,800 jobs in the home country will go. The rest will be cut overseas. The banks are said to employ around 20,000 staff in their investment banking divisions and the planned cuts are set to ultimately strip out annual costs of around £341m.