Westpac cuts 140 jobs but insists AI is not behind the layoffs

Westpac has cut around 140 jobs in its latest workforce restructuring, denying that artificial intelligence (AI) was responsible for the redundancies. 

Westpac attributed the latest job cuts to an ongoing organisational restructure, saying its workforce decisions were driven by changing investment priorities, cost management and evolving customer expectations rather than AI adoption.

The latest redundancies follow another round of cuts earlier this month, when the bank made 102 positions across its Risk, Institutional Banking and Finance teams redundant.

The move comes days after rival National Australia Bank (NAB) announced plans to eliminate up to 2,500 roles by mid-2027.

Westpac cites changing business priorities

The bank periodically adjusts its workforce in response to changes in its business and operating requirements.

"This means from time to time we make changes that may impact some roles and responsibilities as we actively manage costs and investment," the spokesperson told HRD.

"As customer habits change, and the skills and capabilities required in banking continue to evolve, so will our workforce."

The bank said it would seek to retain employees wherever possible through retraining and redeployment. Employees leaving the organisation would receive tailored support and assistance with their career transitions.

Westpac's position comes amid broader changes across Australia's banking sector, where lenders are reassessing workforce structures and investment priorities as customer expectations and technology requirements evolve.

Union questions impact of banking job cuts

The Finance Sector Union (FSU) criticised Westpac's latest redundancies, describing the cuts as "stealthy" and saying they were Christmas gifts that workers had not asked for.

"The FSU holds grave concerns that Westpac has more in the works," said FSU National Assistant Secretary Nicole McPherson in a statement.

The union estimates that more than 10,000 banking roles have disappeared over the past two years, leaving remaining employees to manage heavier workloads.

The FSU has also raised concerns about AI adoption across the banking sector, arguing that technology is contributing to job losses and calling for stronger regulatory safeguards.

"All banks need to look at the bigger picture and see their employees as more than just numbers on a balance sheet," McPherson said.

"They are people with families who support other people with families and the value they bring to a company can never be fully replaced by a machine."

The union said it would meet employees at Westpac and NAB to discuss the latest redundancies and determine its next steps.

While Westpac maintains that its latest redundancies are not AI-driven, the FSU believes technology adoption is contributing to job losses across the sector. 

The differing positions highlight the continuing debate over the factors driving banking workforce reductions and how employees will be supported through the transition.