The bank’s newly appointed leadership is aiming for a $560 million restructure intended to simplify operations and improve returns, although this plan has triggered strong opposition from the Fair Work Commission due to the scale of proposed redundancies. A major source of tension is timing. ANZ’s key investor update, scheduled for 13 October, coincides with a Fair Work Commission hearing where the Finance Sector Union (FSU) will present its objections.
At the centre of the issue are extensive structural changes introduced by the new CEO. These include the removal of 3500 employee roles and the termination of 1000 contractors. These cuts were announced on 9 September and are part of a broader strategy to reduce complexity and improve efficiency across ANZ’s global workforce of 42,000. Worker representatives have criticised the bank for a lack of clarity around which roles will be lost and when the changes will take effect.
ANZ has so far confirmed that 160 senior management roles, 600 jobs from Asian branches and nearly 800 positions in retail banking will be cut. This accounts for just over half the announced reductions. The FSU is raising concerns about the other 2000 jobs that remain unidentified. Internal department reviews are underway, with reports suggesting assessments have already begun within retail banking teams.
The FSU accuses ANZ of breaching transparency obligations under its current wage agreement, which requires employee consultation once a firm decision on job cuts has been made. If the Fair Work Commission finds the bank in breach, it could compel ANZ to provide more evidence that proper consultation processes have been followed.
Speculation is growing that ANZ will unveil wider cost-saving measures totalling up to $2 billion in its October update. Investors are watching closely. Some analysts forecast a return on equity in the range of 11% to 12% though warn that failure to cut at least $2 billion could disappoint the market and lead to further job losses.
Beyond workforce changes, ANZ also appears likely to shift away from its former CEO’s ANZ Plus digital banking initiative. Instead of maintaining it as a standalone platform, the bank is expected to integrate it into its core technology systems. ANZ also plans to speed up the merger with Suncorp Bank which is forecast to deliver synergies worth $260 million by 2030.
Currently, ANZ has the highest cost-to-income ratio of the big four banks at 68% compared to Commonwealth Bank’s 47%. It is looking to close that gap through greater operational efficiency. Whether this ambition will be achieved without further conflict with regulators remains unclear.
