National Societe Generale Bank, the French bank's subsidiary in Egypt, says it will not lay off any of its staff after a Reuters report claimed that the French group will "cut jobs" in some of its overseas operations to mitigate rising pressure on the European giant.
"Cutting jobs does not mean firing people, it means cutting the number of new functions and curbing the bank's expansion," Mohamed El-Dib, NSGB's Chairman & Managing Director told Ahram Online.
With 150 branches and over 4,000 employees, NSGB is one of the largest private banks operating in Egypt. It is also the second largest listed bank in the stock exchange.
"Layoffs are not part of our policy." El-Dib said, explaining to Ahram Online that his French head office chose to cut costs in Egypt because of the already deteriorating status of the Egyptian economy following the 25 January uprising and its subsequent business complications.
On Monday, Reuters reported that Societe Generale headquarters in France will cut costs and sell assets worth 4 billion Euros to bolster capital as its shares fell on concerns about Greek debt and a possible cut to its credit ratings.
Reuters also claimed that the French giant, which owns 77.2 per cent of NSGB, will cut jobs in Russia, Romania, Poland and Egypt, as well as paring down the cost base at its investment banking business by 5 per cent.