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ANZ to axe 1000 jobs despite record profits

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Mon, 13 Feb 2012 5:04p.m.

Last year ANZ's earnings rose 19 percent to over $5 billion

Last year ANZ's earnings rose 19 percent to over $5 billion

The ANZ bank has announced it will be axing 1000 permanent jobs in Australia this year - beginning immediately with 500 middle management, back office and support staff.   

The Finance Sector Union says the move is unjustified given the size of the bank's record profits in Australia.

Last year ANZ's earnings rose 19 percent to over $5 billion.

But the company says banks around the world are entering a difficult environment.

Last month Westpac announced it was slashing more than 500 staff.

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Comments

17 Feb 2012 11:10a.m.

Gary wrote:

you have to agree that ANZ is definitly doing something right. Record profits are achieved through great top management leadership. It is a bitter pill to swallow but all business will go through changes due to online trading. Why do you think the US is trying to control and monopolise the web. I do not think this is the old story of shifting contact centres to other countries, thats dated and times have changed. I would like to think that ANZ is above such low standards and appreciates its staff. Anyway we shall see.

16 Feb 2012 01:00p.m.

Mike wrote:

The 1000 jobs represent just over 2% of ANZ staffing (48000 employed by ANZ according to their web site) so much of the 1000 job losses will fall under natural attrition.

I expect after the 500 middle management, back office, support that noone will be required to take redundancy (unless they are people the bank has been trying to get rid of for years). I dont expect to see any reduction in service from ANZ so the public wont even notice the change. Of course its just as likely to see some strike action as the unions as strong and as pig-headed as the martime union which is going out of its way to destroy the Ports of Auckland, and through such action, themselves!

16 Feb 2012 08:03a.m.

Mike wrote:

The banks are moving into more productive high-tech which allows more productivity for less staff.

Has anyone else noticed that many banks dont seam very busy? More internet transactions etc. If the banks want to remain profitable, they need to not have flab in their business. The banks are moving forward, doing more with less. This is something all business needs to do to remain profitable. If the banks dont do this and 5 years down the track if one of them folded, everyone would be screaming about how they let this all happen?

Middle management has been excessive and growing less needed since the introduction of computers. Basically, you dont need much of it as a manager can manager more in the tech age than before. The banks are also expecting losses from the recession which will hit them in the next few years, so are looking to use the recession to do what they have wanted to do for 20 years and cut some of the flab from their business.

Put some scale to it. How many employees does ANZ have, and 1000 of those is what %? Normal atrition of people changing jobs will account for most of the 1000.

13 Feb 2012 06:12p.m.

Bob wrote:

This is just greed, no other word for it, with record highs why would you change your operating procedures? usually people get rewarded for their hard work, not made redundant...

13 Feb 2012 05:37p.m.

Nikki wrote:

Despite having made a huge profit in a recession. The other side of the story is how many of the axed jobs are going to be recommissioned in Bangalore and in the Philippines? That is where some of the big banks are moving a lot of their back office positions. So shaft you own workers in order to make even more money. It s this kind of ongoing greed that caused the recession in the first place!