Westpac denies the cuts were because of artificial intelligence
Westpac has cut around 140 jobs this week in a move it denied was because of artificial intelligence, just days after rival NAB announced plans to shed up to 2,500 roles.
The bank confirmed the job cuts to HRD Australia, attributing the change to a broader organisational restructure that has been underway for some time.
It also denied reports that the changes were because of artificial intelligence.
The job cuts come in the same month Westpac made 102 positions in its Risk, Institutional Banking, and Finance teams redundant.
The company offered a similar statement on its latest round of job cuts, with a spokesperson saying the bank's workforce changes according to investment priorities.
"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 also reiterated that it will actively seek to retain employees wherever possible through retraining and redeployment, while those who leave will be offered tailored support and assistance with career transition.
The most recent job cuts at Westpac follow the announcement from rival NAB that it will cut up to 2,500 jobs by mid-2027.
Union criticises job cuts
The Finance Sector Union (FSU) described the job cuts at Westpac as "stealthy," saying they were Christmas gifts that no one 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 FSU estimates that more than 10,000 banking roles have disappeared over the last two years, leaving the remaining workforce with a heavier workload to pick up.
It also believes that the job cuts across Australian banks are because of artificial intelligence adoption, as it calls for strong regulatory guardrails in the finance sector.
"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 FSU said it will meet with staff at Westpac and NAB to decide their next steps.
