Loretta, 47, had spent the past nine years in the front office of the San Diego Padres. He'll be manager Joe Maddon's bench coach -- the Cubs' third in as many years -- for the final year of his current contract.
The Cubs also hired former pitcher Bob Tewksbury as the team's mental skills coordinator. Tewksbury served a similar role with the San Francisco Giants the past two seasons, as well as working for the Boston Red Sox for a decade when Cubs president Theo Epstein was there as general manager.
Loretta also spent time in Boston under Epstein during his playing days.
The hirings complete a busy offseason in the coaching department for the Cubs, who also have a new pitching and hitting coach for the third time in three seasons .