Swiss wealth manager Julius Baer is set to implement significant job cuts and reduce the size of its executive board under newly appointed CEO Stefan Bollinger, according to a source familiar with the matter.

The planned layoffs are expected to affect hundreds of employees, though the bank has yet to confirm specific numbers or details. A spokesperson for Julius Baer did not immediately respond to requests for comment regarding the reported job reductions, which were initially reported by US news agency Bloomberg.

The restructuring effort comes as Julius Baer works to restore investor confidence following substantial financial setbacks. The bank suffered losses amounting to hundreds of millions of dollars due to loans tied to the failed property group Signa. These financial difficulties prompted a leadership overhaul, leading to the appointment of Bollinger as CEO, who officially assumed his role on January 9, 2024.

In November, Julius Baer had already signaled the possibility of additional cost-saving measures, indicating that changes could be on the horizon. The upcoming job cuts appear to be part of a broader strategy to streamline operations and reinforce financial stability.

Currently, Julius Baer’s executive board comprises 15 members, though it remains unclear how many positions may be eliminated as part of the restructuring. The bank’s leadership is expected to focus on efficiency and cost reductions to navigate the ongoing financial challenges.

The company is set to announce its full-year results for 2024 next week, which may provide further insights into the impact of these strategic changes. Investors and stakeholders will be closely monitoring the bank’s performance and any additional measures taken to strengthen its financial position.

Alongside the leadership transition, Julius Baer also confirmed that its chairman, Romeo Lacher, will step down from his role in April. His departure marks another significant shift in the bank’s governance as it navigates ongoing challenges and attempts to rebuild trust among investors.

The banking sector has faced increased pressure due to economic uncertainties and market volatility. Julius Baer’s planned restructuring follows similar moves by other financial institutions aiming to cut costs and improve profitability.

As Bollinger settles into his new role, industry observers will be watching how his leadership shapes the bank’s strategic direction and whether the planned changes will help stabilize operations and restore investor confidence.