Westpac shares tumble after job cut reports
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More news: Westpac shares sold off today after the Finance Sector Union said the big four lender is preparing to slash 200 bank teller jobs across its branch network.
Shares were down 2.4% to $37.90 at 1:30pm AEST. The stock is up 15.5% over the last 12 months. Rivals NAB (-2.1%), ANZ (-2%) and Commonwealth Bank (-1.1%) were also trading lower. Financials (-1.6%) was the worst performing sector as the ASX 200 benchmark lost 1%.
Westpac to cut 200 teller jobs as restructure under Miller continues
The news: Westpac is axing 200 bank teller jobs across its branch network, the Finance Sector Union told media. The cuts come as new chief executive Anthony Miller pushes ahead with a major restructure that could see as many as 2000 jobs go.
The context: According to an email to staff from Westpac retail banking general manager Damien MacRae, cited by The Australian Financial Review, the bank will appoint around 200 more lenders and bankers in home and small business lending, while needing around 200 fewer tellers and personal bankers.
The bank will back the strategy with a $200 million investment over the next three years into ATMs and branches and will also create a $5 million development fund for workers who lose their jobs, according to media reports.
What they said: The Finance Sector Union told the AFR Westpac was asking tellers to migrate customers to digital services that ultimately eliminated their own jobs, warning communities still rely on face-to-face banking.
A Westpac spokesman told the AFR the bank changes the composition of its workforce based on its investment priorities.
“We try to keep as many employees in the Westpac Group as we can, through retraining and redeployment,” he said.
The job cuts come as rival banks ANZ, NAB, Bank of Queensland and Bendigo Bank are also slashing staff.
The sources: The Australian Financial Review, The Australian
