UBS Plans 3,000 New Hires in India Amid Job Cuts in Switzerland

As part of its merger with Credit Suisse, UBS intends to lose a comparable number of positions in Switzerland. However, it also intends to hire as many as 3,000 people in India. On 11 February, the Swiss lender announced plans to increase its presence in Hyderabad by adding 2,000 to 3,000 new jobs in the next few months.

As per media reports, UBS's hiring drive in the city would result in a doubling of the firm's staff. This news comes as UBS is still working to incorporate Credit Suisse, its erstwhile competitor that it acquired in 2023 with the help of the state, into its operations. The merger initiated a comprehensive reorganisation plan and made UBS the only major banking firm in Switzerland.

UBS to Cut 3000 Jobs in Switzerland

UBS has previously stated that they want to lay off about 3,000 Swiss workers, probably before the end of the year. When asked whether the layoffs in Switzerland were related to the hiring in India, the bank remained mute. Nonetheless, corporate insiders assured the news outlet that no such link existed. In an attempt to minimise the societal impact, Chief Executive Sergio Ermotti has stated that the majority of the Swiss job losses will be caused by natural attrition or early retirement. Expanding operational and technological capabilities is UBS's primary objective in India. The head of UBS's operations in India, Matthias Schacke, has stated that the bank's goals include expanding its presence in the nation and enhancing its technological skills, particularly pertaining to artificial intelligence.

According to Schacke, UBS is excited to increase its operational footprint in the area and significantly strengthen its digital capabilities, particularly AI. The structural changes taking place within global banking firms are highlighted by the different staff migrations. Following the Credit Suisse merger, UBS is investing in overseas technology hubs and expert centres while also streamlining overlapping tasks in Switzerland.

Move Sparked a Strong Debate in Switzerland

The preservation of domestic employment is a matter that concerns Swiss labour representatives. It is crucial that a large number of jobs stay in Switzerland, according to Natalia Ferrara, VP of the Swiss Bank Employees Association. Investments should not be discouraged by domestic rules, she said. One of the biggest reorganisations in European banking in the past several years is the merger of Credit Suisse.

Saving money without sacrificing service continuity or regulatory compliance is UBS's top priority. The growth in India is in line with the bank's plan to cut costs in lower-cost areas while bolstering operational support services, technology, and artificial intelligence in the long run. The effectiveness of UBS's cost discipline and growth investment strategy will be closely monitored by investors. Considering it repositions itself for a banking landscape powered by technology and completes the integration with Credit Suisse.