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Finance Sector Union national secretary Jason Hall is demanding answers from the Commonwealth Bank of Australia after news broke that 164 workers will lose their jobs in the bank’s technology division.
Job cuts spark backlash as bank reports AU$5.13 Billion Profit
The decision has caused outrage among the Finance Sector Union, which represents nearly 22,000 workers. The union is questioning why the bank is making these cuts just weeks after reporting a massive half-year profit of AU$5.13 billion, Sky News reported.
The country’s largest bank and the biggest company on the Australian Stock Exchange by market value is cutting more than 150 jobs in Sydney. The remaining job losses will affect employees in Melbourne, Brisbane, Perth, Hobart, and Tweed Heads.
“On the one hand, CBA tells its shareholders that it is facing a skills shortage in Australia and it has a commitment to digital talent. And on the other hand, it cuts a further 164 jobs from its technology division,” Hall said on Thursday, News AU reported. “The CBA owes its workers an explanation for why its actions don’t match its words.”
Digital shift
A letter from the Commonwealth Bank to affected employees mentioned that the job cuts were part of efforts to improve digital customer services and required workers with advanced skills to support new ways of working.
A spokesperson for the bank said that they would try to find new positions within the company for affected employees. They explained that, like other organizations, the bank regularly reviewed its structure to improve customer service, which sometimes led to job changes.
The spokesperson added the bank’s focus was on ensuring its employees have the right skills for evolving roles and, whenever possible, offering them new opportunities instead of letting them go. They added that the bank was working closely with impacted workers to provide support during the transition.
Australia’s largest company
The Commonwealth Bank is Australia’s largest company, with a market value of AU$261.7 billion. The bank employs around 53,000 people worldwide, with about 12,000 working in its technology division.
In 2024, the bank hired 1,200 technology professionals, including engineers, cybersecurity experts, and data scientists. It also invested approximately AU$1.1 billion in technology to support its operations.
Last month, it reported a net profit of AU$45.1 billion for the six months ending on Dec. 31, 2024, marking a six percent increase from the previous period.
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