The global finance crisis in the banking sector has caught up with Credit Suisse too. The Bank was sold to UBS in a deal worth $3.25 billion recently. The merger of the two banks has put about 14,000 jobs in India at risk, as the technology centres of UBS and Credit Suisse in India employ about 7,000 people each in India.
Once the takeover is officially completed, it is expected that UBS will adopt measures to reduce costs, which will affect the staff in India, especially those in the back office.
As per media reports, the shareholders of Credit Suisse will receive one equity share in UBS for 22.48 shares of Credit Suisse. While Colm Kelleher will be the chairman of the merged entity, Ralph Hamers will be group CEO.
The annual report of Credit Suisse reveals that in Q4 of 2022, the Bank had already trimmed 30 per cent of its contractor headcount and about 20 per cent of consultant headcount. The fourth quarter had also witnessed a four per cent reduction in the staff strength.
The Bank was at the time determined to focus on reducing consultancy spend by 50 per cent and contractor spend by 30 per cent this year.
In the report, the Bank had said that by 2025 end its workforce would be only about 43,000 strong. Now that the Bank has been taken over by UBS, every action will now be taken in collaboration with UBS.
While communicating the news of sale to UBS to its employees, Credit Suisse had assured that no roles will be immediately impacted and that work will continue as normal.
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