Replaced by machine? The human fallout of Australia’s AI boom

In 2025, Australia finds itself grappling with a seismic shift in its labour landscape, as AI begins to reshape not just how businesses operate, but who gets to stay employed. Once celebrated as a technological marvel promising greater productivity and smarter workflows, AI is now at the heart of a deeply polarising debate — one that pits automation-driven efficiency against the livelihoods of everyday Australians. Major employers across the country are accelerating the adoption of AI systems to streamline customer service, operations, logistics, and retail functions. But as they do so, the casualties of this transformation are becoming increasingly visible: hundreds of workers laid off, support roles erased, and employees replaced by chatbots, scheduling algorithms, or voice-response systems.

The economic logic, according to these companies, is clear: cut costs, increase margins, and modernise. But the social fallout is anything but. For many, these cuts are not just restructures or reorganisations. They are blunt disruptions, executed rapidly, and often without transparency. Some workers are being informed of their redundancies through impersonal, pre-recorded video messages. Others are witnessing their jobs quietly disappear, with no official acknowledgment that AI was the real reason. And for experienced workers or those in customer-facing roles, these transitions offer few clear pathways forward.

We highlight here the most prominent AI-driven job cuts in Australia in 2025 — a snapshot of how this technology is reshaping industries, and what it’s costing the workforce in real terms.

Commonwealth Bank of Australia (CBA) walks back layoffs

In July 2025, the CBA announced that 45 roles in its customer contact centres would be eliminated, attributing the decision to the implementation of a new AI voice bot system. The bank argued that the automation of customer service calls would streamline operations as part of its broader $2 billion investment into technology and frontline services. However, this decision was challenged by the Finance Sector Union, which pointed out that call volumes were not declining and that CBA was simultaneously hiring for similar roles overseas. The union escalated the issue to the Fair Work Commission, where the bank ultimately conceded that its decision had been flawed. In a rare reversal, the redundancies were cancelled in August 2025, making the case a powerful example of the complexities and consequences involved in AI-driven workforce changes.

Atlassian shifts its customer support style

Atlassian, the Sydney-based tech giant announced in early August 2025 that it would be laying off about 150 employees. The cuts primarily affected customer support and operations teams, which the company said were being restructured in line with a broader shift toward AI-driven efficiency. The backlash, however, was immediate and intense, not only due to the job losses but because of the method used to deliver the news. Affected employees received a pre-recorded video message from co-founder Mike Cannon-Brookes explaining the layoffs and the role of AI in the decision. The impersonal nature of the communication, paired with the news of Cannon-Brookes' purchase of a luxury private jet, sparked public criticism and raised concerns about corporate culture in an age of automation. 

Endeavour Group's automated sales

The drinks and hospitality conglomerate Endeavour Group, owner of Dan Murphy’s and BWS, implemented AI-related job cuts in a quieter fashion. As revealed in a news investigation originally published in 2023 and still reverberating into 2025, the company had been phasing out frontline sales roles under the guise of a ‘digitally-led offering’. While Endeavour never publicly attributed these changes directly to AI, internal feedback from affected workers and on-the-ground observations strongly suggested otherwise. Staff were given the impression that bots and automated systems were replacing human sales staff, despite public-facing communications that avoided using the term ‘AI’. Employees reported that many customers still preferred human interaction, and some long-serving workers in their 60s were left unsure of how to transition to new roles or retrain. 

Coles' and Woolworths' end-to-end overhaul

Australia’s retail giants, Coles and Woolworths, have been steadily integrating AI technologies across their operations, leading to widespread though often unquantified job losses. From self-checkout systems and automated inventory tracking to advanced scheduling software, these changes are transforming the way the supermarkets function. In particular, Coles has been trialling agentic AI that automates leave booking and shift management, reducing the need for administrative and store-level roles. While neither company has released specific numbers tied to these automation-led redundancies, unions and worker advocates have raised concerns about the silent erosion of jobs across the sector. With the retail industry employing hundreds of thousands of Australians, these gradual changes are having significant ripple effects, especially for casual and part-time workers with limited retraining opportunities. 

WiseTech Global's technology review

In July 2025, WiseTech Global, a Sydney-based logistics software firm, confirmed that it was cutting jobs as part of a larger workforce review focused on improving operational efficiency through AI and automation. While the company did not specify how many roles would be impacted, its official statement made clear that the review was centered around leveraging technology to streamline its business. WiseTech is a major player in global logistics software, and its decision to automate aspects of its workforce aligns with international trends in tech-based optimisation. However, the lack of detail about who was affected or what support was offered left questions about transparency and the speed at which companies are moving toward AI-based systems without public accountability.

Westpac's modernisation

Westpac Banking Corporation, one of Australia’s largest banks, is preparing to cut more than 1,500 roles as part of its internal transformation strategy known as ‘Unite’. The plan is designed to modernise the bank’s operations, reduce costs, and accelerate digital adoption. While Westpac has not officially tied these job cuts directly to AI, internal reports and strategic outlines point to automation as a core component of the bank’s future plans. It has been indicated that many of the roles being made redundant are becoming obsolete due to technological upgrades and AI-enabled efficiencies. These layoffs represent the bank’s most significant workforce reduction in over a decade and mark a turning point in how traditional financial institutions are responding to technological disruption in the post-pandemic economy.

Telstra goes for efficiencies

In August 2025, Telstra announced the elimination of 550 jobs as part of a broad organisational restructure. Officially, the company denied that AI was the primary reason for the cuts. However, CEO Vicki Brady had earlier stated in May that AI efficiencies would allow Telstra to reduce its workforce significantly by the end of the decade. This contradiction has fuelled speculation that AI was indeed a contributing factor in the latest round of layoffs. While Telstra maintains that these decisions were made to streamline business units and improve customer experience, critics argue that the company is following a familiar pattern: rolling out AI while minimising public disclosure about its impact on jobs. 

ANZ Bank's internal review

ANZ, Australia’s fourth-largest bank, is currently undergoing a strategic review that has already involved workforce restructuring throughout 2025. Although the bank has not directly attributed these changes to AI, industry experts suggest that AI and automation are playing a pivotal role in its internal transformation. The restructuring is part of a long-term plan to enhance digital capabilities and compete more effectively with fintech disruptors. While details remain scarce, the bank’s shift away from traditional operational models implies that more technology-driven job realignments — and likely job losses — are on the horizon.