Westpac slashes 300 roles in ‘callous’ move amid record profits

One of Australia’s biggest banks has slashed hundreds of jobs “to reduce costs” in a move described as “callous” as it rakes despite raking in record profits.

One of Australia’s biggest banks has slashed hundreds of jobs “to reduce costs” despite raking in record profits in the last financial year.

On Thursday, Westpac announced that it was cutting 300 roles, in its head office, customer support and contracting positions.

The Financial Sector Union (FSU) has criticised the move, with its National Secretary Julia Angrisano saying the cuts were “callous” and a “slap in the face” for staff, while adding it was an “appalling and shortsighted decision”.

“To deliver these cuts in such a callous manner amid one of the worst cost-of-living crises we have ever experienced is a blow staff and their families cannot afford,” Ms Angrisano said.

“This is a very profitable bank built off the backs of hardworking staff who go above and beyond every day …

“No reason has been provided for these arbitrary job cuts and it’s just a slap in the face to those who have worked so hard to get the bank to where it is today. It shows a blatant disregard for its staff, customers and communities.”

The FSU would be “fighting back” and urgent meetings with sacked staff is already underway, she added.

In a meeting held last month, Westpac revealed it had enjoyed a 22 per cent surge in profit, and had made $4 billion in six months, as the rest of the country is caught in the throes of an inflation crisis.

A Westpac spokesperson said the cuts were first flagged at the beginning of last year and said the impacted employees were being “supported”.

Westpac is slashing 300 roles. Picture: NCA NewsWire / John Gass

The FSU said the “hardest hit” frontline roles were from some of the bank’s Sydney branches in Barangaroo, Kent Street and Kogarah.

Ms Angrisano said the job losses had come out of the blue but Westpac said they had been planning the cuts for some time.

“In February 2022, we announced plans to simplify the bank, improve accountability and reduce costs,” a bank spokesperson said.

“This ongoing reorganisation is part of our simplification and cost reset program. The changes are primarily across corporate functions and contractors.

“We continue to support our employees as we make these changes.”

Westpac also indicated it would close five branches, three in Victoria and two in NSW, by mid-July “with no guarantee of ongoing employment for staff at these branches”, the union added, saying this was more “devastating” news.

Several branches have already shut.

For the opal mining town of Coober Pedy in South Australia, their last bank branch – a Westpac – closed on February 17.

Locals warned it would force people to drive thousands of kilometres with hundreds of thousands of dollars in cash, and would leave vulnerable customers exposed.

There is currently a moratorium on any more regional bank branch closures as a senate inquiry is underway.

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The bank has shut down a number of branches. Picture: NCA NewsWire / Christian Gilles

Westpac joins the Commonwealth Bank (CBA) among Australia’s big banks who are axing roles.

The Commonwealth Bank left 224 workers unemployed in May, despite making $5 billion in profits in six months.

The job cuts came from its operations, technology, risk management and global markets divisions, as well as the failed Cheddar online app venture.

At the time, Ms Angrisano said that the CBA’s decision was “naked grab for profits at the expense of bank workers who have kept the (bank) functioning during the pandemic and the post-pandemic economic restart”.

Most banks have enjoyed a bumper year as their margins have increased in the wake of interest rate hikes.

On Tuesday, the interest rate rose again for the 12th time in 14 months. Within hours, Westpac passed the hike onto customers, making it the first bank to do so for the latest increase.

Julia Angrisano is national secretary of the Finance Sector Union. Picture: Hollie Adams/The Australian

A number of jobs in the finance sector have been lost in recent months as the economic downturn continues.

Consulting company Aurecon, which has 15 offices in Australia including in most capital cities and several cities in Queensland, cut 70 roles in March.

Management consulting firm McKinsey also announced earlier this year its intentions to terminate 1400 workers as demand dried up. Around 20 Australians were caught up in the lay-offs.

Tech consulting firm Accenture revealed it will slash 19,000 jobs including some in Australia.

Accenture’s cuts will impact 2.5 per cent of its global workforce as it anticipates lower demand for its services.

There’s also consulting giant KPMG, which will eliminate roughly 700 roles in the US, equivalent to two per cent of its overall headcount. About 200 KPMG jobs are expected to go in Australia.

Originally published as Westpac slashes 300 roles in ‘callous’ move amid record profits