The press release seemed very politically correct. Whistleblowers were “alarmed” by what lay behind the extension of a standard technology partnership between Banque Internationale à Luxembourg and the Luxembourg entity of the American giant Kyndryl: Bil confirms that around 140 IT staff will be transferred to Kyndryl as part of the extension of the technology partnership between the two groups. A figure “currently being finalised”, according to the bank, which states that the exact number will be known “at the time of the transfer”.
When questioned by Paperjam, the bank explained that it is “transforming its IT operating model” by entrusting Kyndryl with “the operational execution of certain activities”, whilst retaining “full control over [its] IT strategy and specifications”.
Bil has incorporated this development into its 2025–2030 strategy, which aims to strengthen “resilience”, “agility” and “the capacity to support future business growth”. The bank describes the system as a “plug-and-play” solution designed to enable it to be “faster, more secure and more agile”.
However, the scale of the operation gives the project a whole new dimension. According to the latest annual accounts filed by Kyndryl Luxembourg, the company employed an average of 200 people in Luxembourg during the financial year ending 31 March 2025, compared with 216 a year earlier. The transfer announced by the Bil therefore accounts for nearly 70% of Kyndryl Luxembourg’s current workforce. The company’s annual accounts also show significant local activity, with a turnover of €131.3m for the 2024–2025 financial year. Kyndryl Luxembourg states that it will continue to focus on ‘existing customers’ as well as on developing new opportunities in the Luxembourg market.
Two years without being able to be sacked
Bil claims to have negotiated social safeguards for the employees concerned. The bank states that it has worked with Kyndryl to ensure “equivalent pay and benefits”, in accordance with Luxembourg’s rules on business transfers. The transferred employees will also benefit from “two years’ contractual protection against dismissal from the date of the transfer”. According to the bank, staff representatives were involved “several months in advance” in discussions surrounding the operation.
From a regulatory perspective, Bil reiterates its status as a systemically important bank and states that it has maintained “an open and constructive dialogue with the relevant authorities”, who have been “kept informed and consulted” throughout the process. The initial press release had already made it clear that the transaction remained subject to regulatory approval.
The partnership between the two groups dates back to 2013 and includes the development of a dedicated private cloud and a software-defined network infrastructure, as well as the integration of the Kyndryl Bridge platform to manage IT operations and AI-powered automation tools.
In its official statement, Bil set out its ambition to become “one of the most modern banks in the Grand Duchy”. This modernisation will now involve the large-scale outsourcing of some of its critical IT functions.
