Outrage as CommBank Cuts 164 Tech Jobs Despite Record Profits

Job Cuts Amid Profits

The Finance Sector Union (FSU) has announced that the Commonwealth Bank of Australia (CBA) will be cutting 164 jobs from its technology division, igniting significant backlash. This decision comes shortly after the bank's chair emphasized the need for strong engineering and digital talent.

Job Statistics

CBA reported having over 12,000 employees in its technology division, including 1,200 new hires from the previous year. Despite this large workforce, a recent review has led to these job reductions. The FSU highlighted that the majority of job cuts will occur in Sydney, with others in Melbourne, Brisbane, Perth, Hobart, and Tweed Heads.

Union's Response

FSU national assistant secretary Jason Hall criticized the bank's contradictory messaging about a skills shortage while simultaneously laying off employees. He expressed that the bank owes its workers an explanation for this discrepancy, stating the cuts are “puzzling.”

Communication Issues

The bank's rationale for the cuts involved enhancing capabilities to deliver better digital customer experiences. However, Hall described this explanation as “almost meaningless,” calling for more transparency from CBA. A spokesperson for CommBank stated that they regularly review their organization to deliver the best outcomes and emphasized their commitment to reskilling when possible.

Previous Cuts and Support for Affected Workers

This isn't the first time CBA has made significant cuts; last year, they reduced 105 technology and 116 retail operations jobs despite recently posting $5.13 billion in half-year profits. The impacted workers will receive support from the FSU to ensure they receive their entitlements.