Westpac has slated upwards of 250 positions for redundancy since the beginning of October, prompting the Finance Sector Union (FSU) to characterise the bank’s strategy as a “subtle approach to jettisoning staff”.
The phased retrenchments commenced with the termination of 102 personnel within Westpac’s risk, institutional banking and finance divisions.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The lender subsequently widened the scope of the cuts.
A Westpac representative confirmed to Private Banker International that an additional 140 or so staff were impacted this week, maintaining that the adjustments do not stem from AI implementation, but rather form part of a broader organisational restructure that has been in progress for some time.
The bank spokesperson said: “Westpac is a major Australian employer, with more than 30-thousand people across the country. In FY25 we hired more than 5,000 people in Australia.
“The shape of our workforce changes according to the investment priorities of the Group. While we continue to invest in extra bankers, digital delivery and customer-facing roles, other programs may be completing or require fewer resources.
“Our people are our greatest asset, and we actively seek to retain employees in the Westpac Group wherever possible, through retraining and redeployment. For those who leave, we help them with tailored support and assistance with career transition.”
Competitor National Australia Bank (NAB) recently revealed intentions to eliminate up to 2,500 internal positions by FY27, an adjustment comprising roughly 6% of its aggregate workforce.
The FSU calculates that over 10,000 banking roles have been eliminated throughout the past two years, leaving remaining staff to shoulder increased workloads as surplus duties shift to depleted teams.
“A lack of strong regulatory guardrails for AI is another factor adding to workers’ sense of vulnerability,” the union stated.
In response to the sector-wide contraction, the FSU is convening consultations with staff members across both Westpac and NAB to determine coordinated measures aimed at preventing Australian banking functions from being shifted overseas via offshoring or eliminated entirely.
FSU national assistant secretary Nicole McPherson said: “These stealthy job cuts at Westpac are the Christmas gift no one asked for, and the FSU holds grave concerns that Westpac has more in the works.
“All banks need to look at the bigger picture and see their employees as more than just numbers on a balance sheet.
“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.”
