Swiss Bank to cut workforce by 5% in association with the savings measures

Under the helm of the new CEO of Swiss Bank Julius Baer, Stefan Bollinger, the bank has planned to cut off the workforce by 5% which is claimed to be a part of a savings measure. This decision has been made after the failure of the predecessors which resulted in the losses from its exposure to the failed property group Signa. 

“This is the first move to create a leaner, more straightward way of running our business. We are going to apply the same principles throughout the entire organisation” said the new CEO Bollinger.

The new leadership structure and smaller executive board with five members is believed to increase accountability, instilling discipline as per the statement of new CEO Bollinger. And this initiative is targeted to save the savings of $120.1 million which is 110 million Swiss Francs. Meanwhile, the pretax profit of 2024 is reported to be worse than expected and the shares went down more than 8%. 

The bank said that the income-ratio of the year 2024 looked unsatisfactory which was estimated as 70.9% and far removed from its 2025 target of less than 64%. Following these incidents, the bank had decided not to launch a new share buyback programme.

“The planned cuts amount to 400 jobs” said Nic Dreckmann, the Operations Chief

Stefan Bollinger began his tenure as the CEO (Chief Executive Officer) at Julius Baer Swiss Bank on January 9, 2025 after his predecessor Philipp Rickenbacher. Previously, Bollinger was the co-head of Private Wealth Management for Europe, the Middle East and Africa at Goldman Sachs.

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