Westpac Prepares for Significant Job Cuts Amid Strategic Overhaul
Westpac Banking Corporation is set to reduce its workforce by approximately 1,500 employees, marking its most substantial redundancy round in a decade. This decision comes under the leadership of new CEO Anthony Miller, who has been at the helm since December. His agenda focuses on streamlining bank operations and cutting costs following disappointing first-half results.
Miller has reportedly directed managers to explore options for reducing headcounts by 5% across various teams within the next few months. This follows the announcement that Westpac experienced a 1% decline in its cash profit, which slipped to $3.3 billion in the last reporting period, according to The Australian Financial Review.
While specific numbers have yet to be confirmed, Westpac’s current workforce totals around 35,240, suggesting that the 5% reduction could potentially affect about 1,700 staff members. A spokesperson for the bank noted that while no final decision has been made, redundancies are indeed being evaluated. The spokesperson also explained the bank’s intention to adjust staff levels in line with investment priorities, stating that while they continue to recruit into customer-facing roles, other functions may be streamlined due to evolving needs within the industry.
Westpac’s recent announcements echo a broader trend within the banking sector. The Commonwealth Bank of Australia (CBA), which has recently reported a 6% increase in cash profit to $2.6 billion for the March quarter, has also announced cuts of 163 jobs. This includes reductions at its subsidiary Bankwest, which have raised concerns among the Finance Sector Union about ongoing job security amidst regular staff reductions.
Union representatives have highlighted that job cuts at CBA and Bankwest have now totalled close to 800 in recent months, causing anxiety among employees about future cuts. The union’s national secretary, Jason Hall, emphasised the need for job security amidst ongoing changes within the sector, stating that constant announcement of job cuts leaves workers uneasy.
In an age where customer preferences increasingly trend towards digital banking, Bankwest has closed all of its 45 branches in Western Australia, transitioning to a fully digital model. This shift reflects the significant change in consumer behaviour, as over 97% of transactions are now conducted online, resulting in fewer than 2% of customers visiting branches regularly.
Both Westpac and CBA are navigating a reshaping financial environment, characterised by a push for digital transformation and cost-cutting measures to sustain profitability and competitiveness in a challenging market.
As Westpac and other financial institutions adapt to these realities, the implications of staffing changes will be closely monitored, with an eye on how they will affect both employees and customers moving forward.
