By Ariane Luthi ZURICH (Reuters) -Swiss bank Julius Baer plans to cut its workforce by about 5% under new chief executive Stefan Bollinger and is reducing the size of its executive board as it reorganises after heavy losses from exposure to failed property group Signa.

Julius Baer Group Ltd. last month brought in Stefan Bollinger to draw a line under painful losses caused by loans to a collapsed real estate conglomerate. But it was that past that ruined the new chief executive officer’s presentation of his first strategic moves.

Julius Baer had reportedly discussed reducing its workforce by 10% or less. The bank had about 7,400 employees at the end of 2023.

Swiss banking giant Julius Baer has announced plans to cut its workforce by around 5%. The layoff is as part of a cost-saving strategy launched by the new CEO, Stefan Bollinger. The decision comes after the bank suffered significant financial losses due to its involvement with the now-defunct property group Signa.

JULIUS Baer Group’s new chief executive officer Stefan Bollinger announced a radical revamp of the bank’s leadership and a cost-cutting drive that will claim hundreds of jobs at the Swiss wealth manager.

By Ariane Luthi ZURICH(Reuters) -Swiss bank Julius Baer plans to cut its workforce by about 5% as part of savings measures under new chief executive Stefan Bollinger, whose predecessor was ousted after heavy losses from its exposure to failed property group Signa.

Swiss financial regulator Finma said it had opened an enforcement procedure against Julius Baer Group Ltd., stepping up action against the bank over risk failures linked to the collapse of the Signa real estate empire.

The wealth manager’s shares fell after it said it envisions cutting around 400 positions, extending its cost-saving program.