Australian workers are facing a difficult end to the year as major employers accelerate workforce restructuring, with around 1,500 jobs affected across corporate Australia in just two days.
Rising operating costs, economic uncertainty, artificial intelligence (AI) adoption and offshoring are adding to pressure on the country's employment market.
According to news.com.au, recruitment professionals are warning of a growing “redundancy season”, with further job losses expected before Christmas and into 2027.
Sarah Donegan, managing director of recruitment firm Samuels Donegan, said her agency recorded a 250% increase in jobseeker registrations in October. Nearly half of its registrations since March came in the past two months.
“I’m old enough to know that in years gone by, they would never make people redundant prior to Christmas. But now they just do it.”
“We seem to be taking a leaf out of the US playbook, to be honest. We’ve seen it in the data, the numbers are coming through thick and fast, and I suspect that there will be further big (losses), particularly from the big end of town.
“I hate to say it, but it feels like we are definitely a little bit more cutthroat.”
Canva, Woodside and David Jones face workforce uncertainty
The latest wave of corporate disruption includes major developments at three prominent Australian businesses.
Technology company Canva announced that more than 1,000 employees, representing 22% of its workforce, would be affected by its first major restructure in 13 years.
Meanwhile, energy company Woodside announced plans to cut 500 positions as it targets $570 million in cost savings. Department store David Jones also entered administration, putting approximately 6,000 employees' jobs under uncertainty.
The developments come alongside workforce reductions at National Australia Bank (NAB), Commonwealth Bank, ANZ and Telstra, which have announced job cuts during 2026.
Consultancy firm KPMG was also reportedly preparing to eliminate another 400 positions, potentially taking its total job reductions to 800 this year.
AI and offshoring reshape Australia's corporate workforce
Beyond cost-cutting, the growing adoption of AI and the movement of business operations overseas are adding to uncertainty for white-collar employees.
Canva's restructuring has brought renewed attention to how emerging technologies are changing business requirements and workforce structures.
Offshoring is another growing concern, particularly in banking. NAB, Commonwealth Bank and ANZ have expanded their operations in India, reportedly spending around $1.9 billion on their Indian operations over the past year and employing approximately 23,000 people.
Donegan said Australian banks were increasingly moving roles to offshore centres in India and the Philippines to reduce operating costs.
“The reality is they can hire someone for a quarter of the cost that they’re paying in Australia. And if you look at India, there is a billion people there right, of course they’ve got more skilled people in tech than us.”
She also pointed to the irony of Australian employees being asked to train overseas teams or AI systems before eventually losing their own positions.
Recruiter and business commentator Tammie Ballis said the employment market was becoming increasingly difficult for professionals and graduates.
“We thought it was bad a couple of years ago in 2024, but now it’s getting worse,” she said.
“I’m finding a lot of people that have been made redundant can’t get rehired. I’m finding a lot of uni grads that have got corporate-style degrees – in finance, HR, marketing, cybersecurity … they’re not getting a look in.”
Unemployment and wage growth add to pressure
Australia's unemployment rate rose to 4.7% in September, with more than 39,000 jobs lost compared with August.
Donegan expects the rate to reach “at least” 5%, noting that official employment figures can lag behind developments in the labour market. She also warned that professionals earning more than $200,000 annually could face difficulties securing new positions.
“No one is going to be rushing to hire those people.”
The Reserve Bank of Australia has forecast unemployment could reach 5.1% by December 2028, while HSBC chief economist for Australia Paul Bloxham has predicted the rate could reach the same level by the second quarter of 2027.
Higher interest rates are also putting pressure on smaller businesses. James Keene, managing director APAC at Employment Hero, said employers were increasingly prioritising workforce retention over salary increases.
The platform's latest Jobs Report showed small business employment grew 0.8% in September, while annual wage growth slowed to 2.2% from 4.5% in August.
“Business owners are telling us that after months of absorbing higher overheads, something had to give, and right now protecting job security is taking priority over pay increases.”