Key Points:
- ANZ will cut 3,500 jobs and 1,000 contractor roles as part of a major restructuring.
- New CEO Nuno Matos warns of more “ugly” changes but says cuts are needed for future growth.
- The A$560 million charge marks one of the sector’s largest workforce reductions in recent years.
Restructuring Plan Aims to Streamline Operations
Australia and New Zealand Banking Group (ANZ) announced on Tuesday it will cut 3,500 jobs, or about 8% of its workforce, as part of a sweeping restructuring program under new CEO Nuno Matos. The bank will also reduce reliance on external consultants and dismiss about 1,000 contractors, making this one of the largest rounds of job cuts in the country’s banking sector in recent years.
The restructuring will result in a A$560 million ($369 million) charge, with cuts expected to be completed by September next year. ANZ currently employs about 43,000 people, more than its larger competitors Westpac and National Australia Bank. Despite being the smallest of Australia’s “Big Four” banks by market value, ANZ has been grappling with weaker share price performance over the past year.
Matos, who took the helm in May after leading HSBC’s global personal banking and wealth division, framed the decision as a painful but necessary step to position the company for future success. “I hate to do this, but it’s for the future of the company,” he told the Financial Review Asia Summit in Sydney. “These decisions are very tough because they impact people, their families, and should be a last resort.”
Push Toward Efficiency and Performance
The announced layoffs will focus on reducing duplication, halting projects not aligned with the bank’s priorities, and simplifying internal operations. Matos acknowledged the cuts would create an “elevated and ugly” phase of change but insisted the pace would be managed carefully to ensure both speed and safety.
ANZ emphasized that most customer-facing roles would remain unaffected, and the bank reaffirmed its pledge to preserve jobs at Suncorp Bank, which it acquired in a A$4.9 billion deal last year. Alongside cost-cutting, Matos pledged to foster a “performance-driven culture” across the organization, signaling broader cultural and operational shifts to come.
Investor reaction was initially positive, with ANZ shares rising 1% before slipping to a 0.5% decline by the close of trading at A$32.81. Analysts noted that while the restructuring is expected to improve profitability, the full financial benefits may not be realized until 2027, given the phased implementation and the bank’s September-end fiscal year.
The company is set to release its strategic review on October 13, providing further insight into Matos’s vision. For now, the job cuts mark the first major move of his tenure, underscoring his focus on reshaping ANZ’s operations for long-term stability amid a challenging market landscape.
Also Read: