ANZ to slash 3,500 jobs and cut back on 1,000 consultants in major shake-up by new CEO Matos

ANZ Banking Group (ASX: ANZ) has dealt a major blow to its workforce with plans to slash 3,500 staff over the next year and cut back on contracted consultants in a major shift in business priorities announced by the big four bank since the appointment of Nuno Matos as CEO in May this year.

But the Finance Sector Union (FSU) has vowed to fight the move in the Fair Work Commission, declaring the job losses as a betrayal by ANZ which it describes as one of the most profitable banks in the world.

The FSU, which also describes the redundancies as "unhinged", says the cuts would hit 14 per cent of ANZ's workforce from its retail and technology divisions.

ANZ, which posted a 12 per cent increase in cash profit to $3.56 billion for the first half of FY25, has revealed today that the move aims to simplify the bank in order to strengthen focus on its priorities.

The restructure, which may impact some frontline roles, is expected to deliver a $560 million pre-tax hit to the group’s bottom line in the current half.

"My ambition is for ANZ to be the best bank for our customers, while ensuring we sustainably meet the performance expected over the long-term,” says Matos, who stepped in as CEO following a nine-year tenure by Shayne Elliott.

“We know this will be difficult news for some of our staff. While some of these changes have already commenced, we are committed to working through the impacts as quickly and safely as we can, with both care and respect for our teams affected."

ANZ says it will cut its workforce by 3,500 employees by September next year while also cutting back on engagements with consultants and other third parties which will hit about 1,000 external contractors.

ANZ says the move is aimed at reducing “duplication and internal complexity”.

“We will treat our people with care and respect, and conclude the process as quickly as we can,” says the bank.

“Our people and investments will be focused on the priorities that will best support our customers and our strategic direction.

“There will be limited impacts to frontline customer facing roles.”

ANZ, which has been in the sights of the Australian Prudential Regulation Authority (APRA) over the its non-financial risk management practices and risk culture, says it will also lift its focus on improving these practices.

APRA earlier this year secured a court enforceable undertaking from ANZ to address “ongoing weaknesses” in this area while increasing the capital add-on applied to ANZ from $750 million to $1 billion.

In relation to the job losses announced today, ANZ says it will provide a “comprehensive support program” for staff who will be affected.

This will include individual support, providing career advice and planning support services, and access to a career training fund.

In a major broadside against the bank's decision, the FSU has describing the job cuts as “unhinged, reckless, unnecessary and driven by pure greed”, adding that ANZ employees found out their jobs were at risk via a news alert this morning.

“ANZ’s plan is pure corporate vandalism: destroying livelihoods, gutting communities and feeding greed," says the FSU national president Wendy Streets.

“ANZ is one of the most profitable banks in the world, yet it is betraying 3,500 workers simply to chase even bigger profits. This is out of control - it’s not strategy, it’s unhinged.

“This isn’t a plan, it’s chaos. You cannot build the future of Australia’s biggest bank on secrecy, incompetence and betrayal."

The FSU says ANZ’s credibility was tested two weeks ago when staff in its retail division were alerted to being made redundant before their managers could inform them after they were sent an automated email asking them to hand in their computers.

However, in announcing the latest job cuts today Mato says that ANZ is operating "in a rapidly evolving and highly competitive banking environment".

“As we continue our strategic review, we are eliminating duplication and complexity, stopping work that doesn't support our priorities and sharpening our focus on improving our non-financial risk management practices across the bank," he says.

"Our changes also include ending or reviewing our engagements with consultants and other third parties, impacting around 1,000 managed services contractors.

"While reorganising our teams will change the way we structure the bank and deliver our priorities, what won't change is the dedication of our customer facing bankers who support our customers day in, day out."

Prior to joining ANZ as CEO, Matos was CEO of wealth and personal banking at HSBC where he was responsible for 87,000 employees.

During his 30-year career in the international banking sector, Matos has led his share of business shakeups including his tenure as CEO of HSBC Bank plc and HSBC Europe, where he oversaw the transformation of European operations.