PARIS -- Ailing French state bank Credit Lyonnais and the bank employees union Syndicat National des Banques signed an agreement allowing the bank to cut 1,124 jobs in France by the end of March 1995, as part of its recovery plan.

Credit Lyonnais agreed not to fire anyone outright before that date, to retrain employees so they can be shifted to priority jobs left vacant by those leaving, and to help with relocation. It also agreed to give financial aid to individuals who want to leave Credit Lyonnais to pursue other projects, like forming their own businesses. The bank said it would set aside $36 million to $60 million for restructuring costs in 1993.

Selling Media Retailer

Separately, the bank and Cie Generale des Eaux finalized the details of a right-of-first-refusal agreement covering the sale of their mutually owned media retailer, FNAC SA.

Credit Lyonnais' Altus Finance owns 64.6% of FNAC SA and Generale des Eaux and its unit Cie Immobiliere Phenix own 33.3%. The public owns 2.1%.

The bank is known to want to sell its stake in FNAC as part of its cash-raising efforts after its $1.3 billion loss and $7.3 billion state bailout in 1993. The bank's Altus unit alone lost $469 million in 1993.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.