Australia’s largest bank, Commonwealth Bank (CBA), is set to reduce its workforce by over 100 roles in its technology division, with the bulk of the cuts expected to affect its Sydney operations. Additional redundancies are anticipated across Melbourne, Brisbane, Perth, Hobart, and Tweed Heads.
Workforce Reductions and Union Response
The Finance Sector Union (FSU) has raised concerns over the layoffs, calling for greater transparency from the bank regarding the decision. FSU national secretary Jason Hall questioned the inconsistency between the bank’s stated commitment to digital talent and its latest job cuts.
“On the one hand, CBA tells its shareholders that it is facing a skills shortage in Australia and it has a commitment to digital talent. And on the other hand, it cuts a further 164 jobs from its technology division,” Hall stated.
The final number of redundancies has not been confirmed, but reports suggest that up to 150 roles will be cut in Sydney, with further reductions across other locations.
Bank’s Rationale for Restructuring
In a statement to affected employees, Commonwealth Bank indicated that the changes are part of its strategy to enhance digital capabilities. The bank cited the need to “deliver digital customer experiences faster” and emphasized the importance of upskilling employees to support evolving work processes.
A Commonwealth Bank spokesman stated that the company remains focused on redeployment opportunities where possible.
“Like all organisations, we regularly review how we are organised to deliver the best experiences and outcomes for our customers. That means some roles and work can change.”
He further highlighted the bank’s commitment to re-skilling employees for new roles, ensuring that those affected receive appropriate support.
Financial Performance and Investment in Technology
Despite the job cuts, Commonwealth Bank has continued its investment in digital transformation. The bank’s technology division employs approximately 12,000 staff, and in 2024 alone, CBA hired 1,200 technologists, including engineers, cybersecurity specialists, and data scientists.
The company allocated $1.1 billion to technology investments in 2024 to enhance digital banking services and operational efficiency.
Strong Financial Results Despite Economic Pressures
The workforce reductions come just weeks after Commonwealth Bank reported a net profit of $45.1 billion for the six months ending December 31, 2024, marking a 6% increase compared to the previous period.
CBA CEO Matt Comyn attributed the bank’s strong financial performance to “disciplined operational and strategic execution”, noting that its approach allowed the institution to maintain profitability despite broader economic challenges.
“Through supporting our customers and investing in our franchise, we have been able to deliver solid results for our shareholders, despite the weaker economic backdrop,” Comyn said.
As Commonwealth Bank continues to enhance its digital services, the latest round of job cuts raises questions about how major financial institutions navigate workforce adjustments while investing in technology.
