In a move that has stirred significant controversy, ANZ Bank’s CEO Nuno Matos announced a restructuring plan that includes the cutting of 3,500 jobs, prompting criticism from labor representatives and distress among employees. The bank is set to incur a pre-tax charge of $560 million in its first-half results as a direct consequence of these layoffs, which the Finance Sector Union (FSU) has described as “unhinged” and motivated by “pure greed.”
During a recent statement, Matos asserted the decision was essential for the company’s future, insisting it was not primarily about increasing profits despite the bank posting a substantial profit of $3.6 billion in its latest six-month period. “This is not about profits. This is about getting the basic things that the bank needs to do, right,” he said. However, industry analysts from Citi interpret the announcement as a clear indication that ANZ is prioritizing productivity and efficiency gains, raising questions about the rationale behind the job cuts.
FSU President Wendy Streets expressed her outrage at the reductions, highlighting the betrayal felt by the 3,500 affected workers in an already profitable banking environment. Streets questioned how the bank planned to manage the workload of those laid off, stating, “When the FSU asked ANZ who will actually do the work of the 3500 sacked staff, the bank had no answer, except to say the work will simply stop. That’s not a plan, that’s chaos.” As a result of these grievances, the union plans to challenge the bank at the Fair Work Commission.
On the ground, the announcement has sown seeds of anxiety among the workforce at ANZ’s Melbourne headquarters. Workers reported that while some teams had received earlier briefings about upcoming job losses, many were informed via an email that provided little clarity on the specifics of how their roles might be impacted. One long-term employee downplayed his concerns, citing a previous restructuring that had already seen his team absorb redundancies. “It’s just business as usual. Until we know, you can’t worry about it,” he remarked.
The cuts arrive shortly after a communication mishap during the restructuring process in which ANZ accidentally notified some employees of their redundancies via email before formal notices were issued. This incident has further contributed to a decline in staff morale, intensifying the unease already present among employees.
Details regarding which departments will be most affected by the job cuts remain unclear. However, analysts suspect that both ANZ’s retail banking division and its technology functions may bear the brunt of the reductions. In addition to job cuts, further changes to the bank’s digital platform, ANZ Plus, are anticipated due to its costly nature and subpar performance in the eyes of market analysts.
Looking ahead, Matos is expected to provide more insight into ANZ’s strategic direction during a market briefing scheduled for October 13, where analysts speculate he may set new financial return targets. Such developments suggest that the current announcement may be part of a broader strategy to reshape ANZ under Matos’s leadership. The upcoming strategy day has raised expectations for a more detailed plan that could potentially redefine the bank’s future while addressing immediate concerns regarding job losses and operational stability.
