Major banks speed past 2000 job cuts in 2023
The big four banks have made more than 2000 workers redundant this year as they tighten their belts in response to growing cost pressures.
Westpac has led the charge with more than 1080 jobs cut, according to the Finance Sector Union. An analysis of the union’s press releases since the start of the year indicates that Commonwealth Bank has followed up with close to 600 job cuts, while National Australia Bank has made about 340 staff redundant since January.
The big four banks have been tightening their belts in response to growing cost pressures. Paul Rovere
The FSU did not have comprehensive numbers for ANZ. However, its half-year results show that in the year to March it reduced its full-time equivalent staff by more than 350.
The statistics come ahead of three of the major banks – Westpac, ANZ and NAB – reporting their full-year results next month, where cost inflation is expected to be a focal point for investors and analysts.
Goldman Sachs analyst Andrew Lyons said cost pressures will continue into the 2024 financial year, but will be split between more expensive staff and third-party contracts for software and other systems.
“While staff inflation is well understood, banks are increasingly worried about the impact of renegotiating their third-party costs, where post-COVID inflation has been significant,” Mr Lyons said.
Mr Lyons said inflation had “accelerated” in software publishing and data hosting services, which are two of the sector’s biggest third-party costs.
“Reflecting these pressures, we have increased sector expenses in the 2025 financial year estimates by 2 per cent on average, and note that every 5 per cent increase in our non-staff expenses reduces sector 2024 financial year [after-tax profits] by 2
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