Julius Baer will lay off 300

The Swiss private bank is working towards increasing profits and cutting costs.

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Following a huge drop in profits last year, Swiss private bank, Julius Baer (JB), is now planning to cut 300 jobs in 2020. The objective is to increase profitability with a three-year strategy to improve margins. However, the Bank’s employees in Singapore and Hong Kong, where it has been expanding rapidly of late, will not be deeply impacted by the downsizing. A majority of the layoffs, that is, about 200, will take place in Switzerland itself. The rest will happen mostly in Europe and the Middle East. However, in Asia, JB is reported to be considering laying off some underperformers along with some very highly-paid senior managers, to cut costs.

The wealth management institution is attempting to improve its revenues and adjusted cost-income ratio to 67 per cent in the next two to three years. Its earlier target was 68 per cent, against which it achieved a level of 71 per cent last year, by cutting costs by $200 million and growing income. It plans to focus more on investing in human advice and technology, and also concentrate on sustainable profit growth.

The executive board of the Bank has also shrunk under the new CEO, who took charge in September. The trimmer and more efficient board has been entrusted with the responsibility of focussing on clients, especially the super rich ones.

The Bank will be increasing its offerings for its rich and super rich clientele and also invest more on technology.

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