Commonwealth Bank to Cut 192 Jobs for ‘Automation’

The sign of the Commonwealth Bank is seen at one of its branches in Melbourne, Australia, on Aug. 8, 2018. William West/AFP via Getty Images

Australia’s largest bank will cut 192 jobs for automation, the Financial Services Union (FSU) alleges.

The Commonwealth Bank of Australia (CBA) will slash the jobs for “automation initiatives,” according to the union.

The FSU said it was notified by the CBA that automation allowed for “simplified processes” and was one of the reasons for the impending job losses.

“Workers in the financial services sector should be enormously concerned that Australia’s largest bank is now making workers redundant because of automation,” FSU National Secretary Julia Angrisano said in a statement.

The FSU said the jobs will be cut from offices in Sydney, Melbourne, and Perth.

This includes 47 in consumer finance, 21 everyday banking jobs, 87 home buying operations, and 9 BankWest lending roles.

The union said the CBA has slashed more than 1,000 jobs in the last year following a downturn that has impacted “everyday banking” and “home buying” operations.

Ms. Angrisano claimed CBA has a “huge problem” with staff shortages and excessive workloads, adding that “cutting staff does nothing to reduce that concern for workers.”

“The jobs being lost are specialists across a range of areas and it is hard to believe that the bank can afford to lose so many experienced staff at the same time that it has a significant overwork problem across the organisation,” Ms. Angrisano added.

The Epoch Times has contacted Commonwealth Bank for comment.

The CBA is due to hold an annual general meeting on Wednesday.

CBA Financially Stable

The CBA reported a $10.188 billion net profit after tax in the 2023 financial year. This was 5 percent higher than the 2022 financial year.

The company said operating expenses had lifted 5 percent, driven by higher staff and information technology costs.

“Staff expenses increased 9 percent mainly driven by wage inflation and increased full-time equivalent (FTE), partly offset by higher annual leave usage as COVID-19 restrictions eased, and productivity initiative,” CBA said in its latest financial results presentation (pdf)

“The average FTE increased 5 percent primarily due to a reduced reliance on external vendors as we insource and enhance our IT and engineering capabilities.”

CBA stated in August it employed more than 53,000 overall, with 90 percent based in Australia or New Zealand.

Staff-related expenses equated to $7 billion in total in the 2023 financial year.

Commonwealth Bank shares slid 0.01 percent in Oct. 9 trade and is currently trading at $100.03. The bank has a market capitalisation of $167.67 billion, the largest in Australia.

Cashless Move

The CBA meanwhile has also sped up its move towards cashless transactions recently tripling the fee for depositing cash into business accounts.

Business transaction account customers now face a $10 fee for depositing a quick cash bag, up from $3 previously.

“We are writing to let you know that we are making changes to transaction fees on your Business Transaction Account from Oct. 1, 2023,” the bank said to customers.

“We know some of our customers will always prefer paying in cash, and we will continue to support you with services.”

Cash Welcome campaign advocate Jason Bryce said, “This is not for a teller service. This is a $10 fee for dropping your cash bag into the deposit machine, probably after hours.”

Macquarie Bank is also planning to stop accepting cash, cheque, and phone payments from next year.

“We'll also be switching off our automated telephone banking service used to make payments over the phone,” Macquarie Bank said in September.