Union slams continued workforce downsizing
Commonwealth Bank is set to eliminate 88 back-office jobs in Sydney, Perth, Brisbane, Melbourne, and Canberra as part of a larger restructuring plan, according to the Finance Sector Union. These job cuts will affect a total of 221 positions.
CBA's decision to downsize its workforce is driven by the need to rein in costs amid high inflation and rising wages while investing in technology to enhance productivity, The Australian reported. This cost-cutting trend is not unique to CBA, as Westpac recently announced a 2% reduction in its workforce during the three months leading up to June.
The impacted roles at CBA include project managers, business analysts, data architects, risk and control managers, cyber security managers, and service delivery managers, according to The Australian. The Finance Sector Union reports that employees who are not retrenched will be redeployed to other positions within the bank.
The move comes after the bank laid off 251 employees last month, bringing the total number of job losses at Australia's largest bank to 339 in the past four weeks.
CBA response and union criticism
In response to the job cuts, a spokesperson for CBA stated that the bank regularly reviews its organisational structure and required skill sets as part of its focus on business improvement. The spokesperson emphasised that the restructure will not result in reductions to customer-facing teams, which serve customers in branches, over the phone, and online.
However, Jason Hall, assistant secretary of the Finance Sector Union, criticised the bank's actions, particularly in light of CBA's record $10.2 billion cash profit.
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“These slash and burn tactics are designed to cut costs, increase profits and take the whip to those who remain,” Hall told The Australian. “The latest profit figures come from the hard work our members have put in over the past year. It is appalling that after all that effort, instead of being rewarded, these staff are losing their jobs.”
Redeployment and offshoring
While acknowledging that changes in roles and work requirements can occur, the CBA spokesperson said that the bank strives to redeploy as many affected individuals as possible.
“Our priority is to treat every individual with respect and care, taking time to talk with each employee impacted to understand individual circumstances and work with them on finding opportunities and building skills to support them for another role in or outside the bank,” the spokesperson told The Australian.
CBA's decision to reduce back-office jobs aligns with the broader industry trend of offshoring technology roles. This trend is driven by factors such as a skills shortage, high salaries, and the rise of remote work, The Australian reported.
CBA is currently engaged in a legal dispute with the union over its directive requiring employees to spend at least half of their monthly working hours in the office.
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