Société Générale Drops 1.22% Mid-Morning Following Announcement of 1,800 Job Cuts
Société Générale falls 1.22% by midday on January 23 to 69.86 euros, following the announcement of a plan to cut 1,800 net jobs in France by 2027. The group states that this reorganization, which affects central functions and retail banking outside the branch network, would rely on natural departures and internal mobility, without any forced exit plans.
Midday Stock Performance and Organizational Simplification
At midday on Friday, January 23, Société Générale shows a decline of 1.22% to 69.86 euros, having closed the previous day at 70.72 euros. This downward movement comes after the group announced a project for organizational simplification aiming for a net reduction of 1,800 positions in France by 2027. According to the group, this reorganization would rely on natural departures and a system of internal mobility, without any forced exit plans, as part of the employment agreement signed on December 15, 2025, with three trade unions. The project affects various activities and central functions at headquarters as well as the regional organization of retail banking, with the branch network not being affected. The group specifies that the changes would occur gradually in 2026 and 2027, in line with its strategic roadmap announced in September 2023 aimed at improving operational efficiency. Technically, the stock is now trading below its resistance level at 70.98 euros, a level unsuccessfully tested on Thursday. The RSI is at 53, a neutral zone indicating a balance between sellers and buyers without excessive tension.
Despite Today's Decline, Positive Momentum Supported by Analyst Upgrades
Despite today's decline, the stock maintains a favorable momentum supported by several target upgrades this week. Deutsche Bank raised its target to 75 euros on January 21, while Grupo Santander increased it to 82.80 euros on January 19, reflecting analysts' confidence in the group's trajectory. From a technical perspective, the stock is trading well above its 50-session moving average at 64.48 euros and its 200-day moving average at 54.68 euros, confirming the strength of the underlying bullish trend. The MACD histogram shows a negative value of -0.28, indicating a slight slowdown in short-term momentum after the recent strong progress. The stock has shown a remarkable performance of 32.11% over three months and 138.3% over one year, illustrating the sector's catch-up by the bank in an environment favorable to European banking stocks. Investors are now awaiting the publication of the 2025 annual results scheduled for February 6 to assess the group's ability to continue this growth trajectory and measure the impact of its operational efficiency plan on profitability.
