CBA cuts hundreds of offshore contractor roles as AI expands

The Commonwealth Bank of Australia (CBA) has cut hundreds of contractor roles at an offshore call centre in South Africa after expanding the use of artificial intelligence (AI) across its customer service operations, according to multiple media reports.

The affected workers were employed by Nutun, a Johannesburg-based outsourcing provider contracted by CBA. 

Employees told Bloomberg that AI gradually took over customer chat tasks as the bank reduced its outsourcing contract. One insider estimated the shift would save CBA tens of millions in annual operating costs.

AI takes on customer service work

The cuts follow a year of aggressive AI investment.

Earlier this year, CBA appointed Ranil Boteju as Chief AI Officer. He joined from Lloyds Banking Group, where he led AI, data and machine learning programmes.

The bank also partnered with Microsoft to build an AI-powered messaging platform. The system triages and resolves customer enquiries. By May 2026, CBA's Rachel Round said it was handling nearly nine out of 10 customer conversations without human intervention.

A CBA spokesperson said the bank had hired more than 140 people across its Australian contact centre operations since the start of the year.

Union challenges broader workforce cuts

The contractor reductions come amid wider restructuring across the bank.

The Finance Sector Union (FSU) said CBA has cut nearly 800 roles in 2026. That includes 276 redundancies announced in July across technology, operations and human resources.

The union has lodged a formal dispute with the Fair Work Commission. It is seeking greater transparency on the reasons behind the cuts.

The FSU also questioned the scale of the reductions. CBA reported a net profit of $5.44 billion for the first half of the 2025-26 financial year, up 6% year on year.

AI raises new questions for HR

The latest cuts highlight a growing challenge for HR leaders.

When AI reduces workloads, organisations can shift the impact through outsourced and offshore contracts. 

Contractor workforces generally sit outside consultation and redundancy obligations under Australia's Fair Work Act 2009.

CBA has acknowledged these workforce challenges. In May 2026, Chief Executive Matt Comyn said AI-driven transitions should be managed carefully. He announced a A$90 million Future Workforce Program focused on early role visibility, reskilling and dignified exits.

The latest contractor cuts raise fresh questions about whether those commitments extend to outsourced workers. For HR leaders, the case highlights a broader reality. Workforce displacement through supplier contracts remains workforce displacement, regardless of who employs the affected workers.