UBS-Credit Suisse Merger: Thousands of Indian jobs at risk

After days of market turmoil, Swiss authorities may have averted disaster and alleviated concerns by forcing a merger of the country's two largest banks, the distressed Credit Suisse Group AG and the stronger UBS Group AG, in a government-brokered deal. However, their actions may have jeopardized the jobs of nearly 14,000 Indian employees at the bank's technology back offices in three cities, including Pune.

The Swiss government-backed takeover of Credit Suisse by UBS is expected to have the greatest impact on both UBS and Credit Suisse's India-based technology centers.

According to a news agency, the banks employ approximately 7,000 people in their technology centers spread across three Indian cities.

Following the merger, UBS is probably going to prioritize role rationalization and cost-cutting measures, which could result in job losses at multi-city facilities known locally as global in-house centers (GIC). According to the report, UBS will seek to retain only the best talent at CS.

“India and Pune are likely to be hit by the merger as most of the jobs are backend operation jobs and likely to have duplication with UBS, "Vinit Deo, the founder of financial advisory firm Posiview Ventures, made the announcement on Twitter.

Though UBS has not described how many jobs may be at risk as a result of the merger, it has stated that the number will be significant. In a statement, the company stated that it intends to reduce the combined company's annual cost base by more than $8 billion by 2027. That amounted to nearly half of Credit Suisse's expenses last year.

'Get back to work'

After a tumultuous week that culminated in the 166-year-old lender being taken over by its largest rival UBS Group AG, the bank said in a memo to employees that urged them to continue "business as usual."

Employees were reminded not to reveal any business secrets to their new colleagues as long as the emergency acquisition negotiated in crisis talks over the weekend had not closed. “Credit Suisse is still our competitor,"  In a memo to employees, CEO Hamers mentioned.

“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, "The memo was signed by Chairman Axel Lehmann and CEO Ulrich Koerner.

“Please note that there is no immediate impact on our clients and on our day-to-day working operations," they wrote. “Our branches and global offices will remain open, and all colleagues are expected to and should continue to come to work."