(Oct 22): Westpac Banking Corp is cutting another 140 roles, the latest sign that Australia’s weak housing market and an increased use of artificial intelligence technology are biting into the country’s workforce.
The Sydney-based bank informed the Finance Sector Union of 140 job cuts this week, following a further 102 cuts announced to the union two weeks ago, according to a Westpac spokesperson. The latest cuts will target roles across the bank, according to a Thursday statement from the FSU, with the earlier reductions impacting Westpac’s risk, institutional banking and finance teams, the union said.
Australia’s banking sector has seen a slew of headcount reductions as firms restructure. On Tuesday, National Australia Bank Ltd. announced up to 2,500 job cuts just over a year after ANZ Group Holdings Ltd said it would trim headcount by around 3,500. In May, Commonwealth Bank of Australia floated the prospect of job cuts as the bank increases its adoption of AI.
“The shape of our workforce changes according to the investment priorities of the Group,” a Westpac spokesperson said in a statement. Westpac has more than 30,000 staff. “As customer habits change, and the skills and capabilities required in banking continue to evolve, so will our workforce.”
Westpac seeks to retain staff where possible and offers support for those who depart, the spokesperson said. “While we continue to invest in extra bankers, digital delivery and customer-facing roles, other programs may be completing or require fewer resources.”
Australia’s jobless rate has ticked up to 4.7% in recent weeks as the Reserve Bank executes the most aggressive tightening cycle among developed economies this year.
The layoffs bring the total number of job reductions to more than 10,000 for the banking sector in the past two years, according to FSU estimates.
“Although a range of macro-economic excuses have been offered by the banks, the FSU believes the seductive automation potential of AI is really driving their hunger for the emerging technology,” according to the union’s Thursday statement. “A lack of strong regulatory guardrails for AI is another factor adding to workers’ sense of vulnerability.”
Moves to reduce staff follow a slump in the housing market that has weakened home lending — traditionally an important source of earnings for Australian banks. Four interest rate increases from the country’s central bank has also added pressure on businesses and households, weakening sentiment.
Global peers are also trimming headcount. HSBC Holdings Plc is considering reducing up to 10% of its workforce, which would impact around 20,000 roles, while Standard Chartered Plc plans to eliminate around 8,000 support jobs over the next four years.
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