BoQ cuts 250 jobs as profit takes a hit
Bank of Queensland is axing up to 250 jobs, marking the latest cuts to employees across the banking sector.
The cutbacks will incur $25 million in redundancy costs and are part of another $79 million in profit hits to Brisbane-based BoQ for the final six months of this financial year. That number includes absorbing additional integration costs following its controversial acquisition of ME Bank.
Bank of Queensland is cutting jobs, joining others in the banking sector. Dan Peled
BoQ, which has a loan book of more than $80 billion, has been battling a stream of setbacks including the shock axing of former chief executive George Frazis last November andthen having two regulators impose enforceable undertakings on the bank in May.
Analysts at Goldman Sachs also turned pessimistic on BoQ’s outlook this week, slapping on a sell recommendation amid concerns about weak loan volumes and cost pressures.
The job cuts, detailed in a sharemarket announcement on Friday, are taking place this year and designed to bring BoQ into a shared services model, in which roles for different sections that are similar are centralised.
It follows BoQ also shrinking the size of its executive team under chairman-turned-chief executive Patrick Allaway.
BoQ declined to outline remaining staff numbers or where the cuts were occurring. The corporate entity employed 3180 people as of February, although that number excludes those working at its franchised branches.
Other institutions have also been making cuts: NAB lopped 222 jobs earlier this month, Westpac 300 in June and CBA 251 in July.
BoQ flagged it would incur almost $50 million in restructuring costs, including $11 million in impairments after shrinking office space and another $14 million in
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