SAWT BEIRUT INTERNATIONAL

| 29 March 2024, Friday |

Credit Suisse-UBS merger likely to impact 14,000 jobs in India

While Swiss authorities managed to avert a financial crisis, the turmoil in the banking sector across the world has led to market upheaval and massive financial losses. Credit Suisse is the latest bank to go kaput. Its share prices started falling on Wednesday and by Sunday, it was sold to its domestic rival UBS for $3.25 billion. The decision to merge the two banks will likely have a major impact on jobs in India.
Nearly 14,000 Indian employees working in three Indian cities are at risk of losing their jobs after the merger. Technology centres of both UBS and Credit Suisse in India will likely be dealt a massive blow following the Swiss government-backed takeover.
The technology centres of both the banks employ around 7,000 employees each in three Indian cities, an Economic Times report said. Once the merger is finalised, UBS is likely to focus on cost-cutting measures, and the Indian staff of the two companies is likely to be heavily impacted. Locally known as global in-house centres (GIC), UBS will try to retain only the best of the best at these centres in India.
While UBS hasn’t released an official figure for job cuts, the number is expected to be huge since the company aims to cut the combined company’s annual cost base by more than $8 billion by 2027. The amount is half of Credit Suisse’s expenses last year.
Meanwhile, UBS, in a memo, asked employees to continue to see Credit Suisse as a rival bank until the talks are over. They should not divulge any business secrets to their new colleagues, the memo said. “Credit Suisse is still our competitor,” UBS CEO Ralph Hamers wrote in a memo to employees.
Further, Credit Suisse urged employees to continue to work as usual despite everything that is happening.
“We know that many of you will have been following the intense media coverage over the past 48 hours on the future of Credit Suisse and appreciate the enormous uncertainty and stress that this has caused,” Chairman Axel Lehmann and CEO Ulrich Koerner said in the memo.
“Please note that there is no immediate impact on our clients and on our day-to-day working operations. Our branches and global offices will remain open, and all colleagues are expected to and should continue to come to work.”
Credit Suisse said it is identifying which roles can be let go of and “will aim to continue to provide severance in line with market practice.”

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