Commonwealth Bank lays off hundreds of employees amid digital banking shift
Commonwealth Bank of Australia (CBA) is eliminating over 100 positions as part of its ongoing transition to a digital banking model. Citing “efficiency and simplification” as key reasons for the layoffs, the move follows a profitable financial year, during which the bank reported a $9.5 billion profit.
The Finance Sector Union (FSU) confirmed that a total of 116 jobs will be affected, with the majority of cuts occurring in New South Wales. Victoria and Western Australia will also see significant reductions. The job losses include 47 positions from the retail operations team, 21 from the chief technology office, and 15 from the strategy and performance divisions.
This latest round of job cuts coincides with the impending closure of 45 Bankwest branches by October, as the subsidiary shifts towards a fully digital banking model. The FSU has lodged a dispute against CBA at the Fair Work Commission on behalf of affected Bankwest employees, urging the bank to commit to no further layoffs and to improve pay and working conditions in the upcoming enterprise agreement negotiations.
Jason Hall, the FSU’s national assistant secretary, highlighted the broader impact of the bank's decisions. “In addition to the closure of Bankwest branches, which will affect 350 jobs, the Commonwealth Bank has cut over 280 positions in Western Australia over the past two years,” he stated. Hall emphasized that these cuts occur amidst a backdrop of rising inflation and cost-of-living pressures that are diminishing workers' earnings.
CBA has responded to the situation by asserting its commitment to its workforce. A bank spokesperson noted that CBA employs around 54,000 people both domestically and internationally. They explained that as part of the bank's focus on continuous business improvement, it regularly reviews its processes and organizational structure to ensure the best customer experiences.
"Some roles and work may change – they may no longer be required, or new roles may be created," the spokesperson said. The bank aims to prioritize the deployment and reskilling of impacted staff where possible, stating, “This means that many of our people may remain with us. We are working closely with every individual to support them with respect and care.”
In addition to the layoffs, CBA is also trialing an artificial intelligence chatbot named HeyCommBank, designed to streamline customer service operations. This AI initiative could potentially replace thousands of local call centre staff, although the current job changes are reportedly unrelated to this project. The bank is conducting trials by testing the technology on employees who are also customers, marking a significant step in its embrace of artificial intelligence.
As CBA navigates this transition to a more digital-centric banking model, the impact on its workforce is evident, raising questions about the future of jobs in the sector and the balance between technological advancement and employee welfare.