Swiss private bank Julius Baer is planning to reduce 1,000 jobs following the purchase of Bank of America Merrill Lynch's international wealth management business.
The proposed job cuts represents almost 15-18% of its combined workforce of 5,700 in over 50 locations, and will be implemented in middle and back office functions of the combined group, the lender said.
The company said significant reduction of former Bank of America corporate overhead and other allocations will form part of its targeted profitability improvement measures.
Acquisition of Merrill’s Geneva-based unit will be completed in the first quarter of 2013 and takeover of other units in eight countries, including India and Spain will be executed later that year.
As of August 2012, Julius Baer Group’s AUM increased to CHF184bn ($196.5bn), up by 8%, since the end of 2011, while its BIS total capital ratio was 24.8% and its BIS tier 1 ratio 22.4%.
The private bank has a workforce of over 3,600 in more than 20 nations and over 40 locations, including Zurich (head office), Dubai, Frankfurt, Geneva, Hong Kong, London, Lugano, Milan, Monaco, Montevideo, Moscow, Shanghai and Singapore.