BNP Paribas SA $BNP.PA, France’s largest listed bank, is launching a major overhaul of its domestic retail operations. CEO Jean-Laurent Bonnafé is spearheading a plan to reduce the physical branch footprint in response to long-term structural inefficiencies and the accelerated shift toward digital banking. The first wave of this transformation includes the closure of approximately 80 retail branches in 2025, followed by an additional 120 closures in 2026. Over the longer term, BNP aims to shrink its physical network significantly while strengthening its digital and remote banking capabilities.
Gradual Workforce Transition, Not Mass Layoffs
Rather than implement abrupt layoffs, BNP Paribas is pursuing a strategy of gradual workforce reallocation and attrition. Internal projections indicate that staffing in the retail branch segment will decline by 5% annually. Simultaneously, the bank plans to expand headcount in digital customer service functions, such as online and phone banking.
Union representatives, first briefed on the strategy in March, continue to negotiate with BNP management. According to sources familiar with the matter, displaced employees will be offered internal mobility options or early retirement plans. The institution is also relying on natural attrition to minimize compulsory redundancies.
Digital Realignment of Retail Strategy
BNP Paribas has long struggled to generate competitive returns from its French consumer banking division, which faces low interest margins and high operating costs. The current initiative aligns with a broader trend among European lenders toward leaner, tech-driven distribution models.
Through digital consolidation, the bank aims to reduce overhead while maintaining client coverage. Investments in its Hello bank! platform, which targets digitally native users, underscore a commitment to omnichannel delivery with reduced physical reliance.
Key Structural Adjustments Underway
The bank’s strategy reflects a shift from volume-centric retail operations to leaner, margin-focused structures. The following structural adjustments are underway:
Reduction of physical branches by over 200 by end-2026;
Annual 5% reduction in branch network workforce;
Redeployment of personnel to remote banking units;
Continued negotiations with labor unions to secure voluntary exits;
Focused investment in digital platforms and self-service channels.
These measures aim to improve operational leverage and reposition BNP Paribas' French operations for a more sustainable long-term trajectory.
Profitability and Competitive Pressures
BNP Paribas’ domestic retail segment has underperformed relative to its corporate and investment banking arms. In an environment of intense pricing pressure, customer digital adoption, and regulatory costs, physical infrastructure represents a growing liability. By reallocating resources toward high-efficiency service models, the bank is positioning itself to maintain relevance in a reshaped financial services landscape.
BNP Paribas' strategic branch closures highlight a clear shift to a digital-first banking model.