Swiss bank, Julius Baer plans to reduce its workforce by five per cent as part of a cost-cutting strategy under Stefan Bollinger, its new CEO, . The move comes after the bank suffered significant losses due to its exposure to the failed property group Signa.
Bollinger, who took charge last month, believes the new leadership structure will improve accountability and discipline. The planned job cuts will affect around 400 employees, as confirmed by Nic Dreckmann, chief operating officer, reported Reuters.
The wealth manager aims to save 110 million Swiss francs ($120.1 million) and has decided to streamline its executive board, reducing it to five members. The announcement followed a disappointing 2024 pretax profit report, which fell below expectations and led to an eight per cent drop in the bank’s shares.
Julius Baer’s cost-income ratio for 2024 stood at 70.9 per cent, which the bank considers unsatisfactory. It remains far from its 2025 target of below 64 per cent.
As part of its financial strategy, the bank has also decided not to proceed with a new share buyback programme.
Despite these setbacks, the bank reported a 16 per cent increase in assets under management, reaching 497 billion francs. The restructuring efforts mark the first steps in Julius Baer’s attempt to improve efficiency and stabilise its financial performance following a turbulent period.
