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Australia and New Zealand Banking Group announced Monday it will eliminate approximately 3,500 positions by September 2026 as part of a sweeping restructuring designed to simplify operations and strengthen focus on core priorities.
The major Australian bank said the job cuts will be accompanied by a $560 million before-tax restructuring charge in the second half of 2025, with additional reductions in consultant and third-party engagements affecting around 1,000 managed services contractors.
ANZ Chief Executive Officer Nuno Matos said the changes aim to position the bank as "the best bank for our customers" while ensuring sustainable long-term performance in an increasingly competitive environment.
"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," Matos said in a statement.
The restructuring represents approximately 11% of ANZ's workforce, based on the bank's most recent employee figures. The bank emphasized that frontline customer-facing roles will experience limited impacts as it focuses reductions on back-office and support functions.
Matos described the banking environment as "rapidly evolving and highly competitive," necessitating the elimination of duplication and complexity while stopping work that doesn't support core priorities.
"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 said.
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The announcement comes as ANZ conducts a comprehensive strategic review aimed at strengthening its competitive position in the Australian banking market. The bank plans to provide a detailed strategy update to investors on October 13, 2025.
ANZ assured stakeholders it will maintain commitments to federal and Queensland governments regarding its acquisition of Suncorp Bank, which was completed earlier this year for $4.9 billion.
The restructuring will accelerate the bank's focus on non-financial risk management practices, an area that has drawn increased regulatory scrutiny across the Australian banking sector in recent years.
"Our people and investments will be focused on the priorities that will best support our customers and our strategic direction," the bank stated in its announcement.
ANZ said it will reduce internal complexity while concentrating resources on customer-serving activities and strategic initiatives that align with long-term objectives.
The bank has established a comprehensive support program for affected employees, including individual support services, career advice and planning assistance, and access to a career training fund. ANZ committed to consulting with staff and engaging with relevant unions throughout the transition process.
"We will treat our people with care and respect, and conclude the process as quickly as we can," the bank stated.
The job cuts reflect broader pressures facing Australia's major banks as they navigate regulatory requirements, technological disruption, and competitive challenges from both traditional rivals and emerging fintech companies.
ANZ's workforce reduction follows similar moves by other major Australian banks in recent years as the sector adapts to digital transformation and changing customer expectations.
The bank emphasized that customer service capabilities will remain intact despite the workforce reductions.
"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," Matos concluded.
The restructuring charge will impact ANZ's financial results for the second half of 2025, with final figures to be included in the full-year results announcement scheduled for November 10, 2025.
ANZ shares have faced pressure this year amid concerns about net interest margin compression and credit quality in a challenging economic environment. The bank's stock performance has lagged some competitors as investors weigh the impact of regulatory changes and economic uncertainty.
The workforce reduction comes as Australian banks face ongoing scrutiny over fees, lending practices, and customer service standards following the Banking Royal Commission recommendations implemented in recent years.
Industry analysts have noted that major banks are increasingly focused on operational efficiency and cost management as revenue growth faces headwinds from competitive pressures and regulatory constraints.
The reduction in consultant and third-party engagements reflects a broader trend across the banking sector toward reducing reliance on external services and bringing more capabilities in-house.
ANZ's announcement follows a period of strategic repositioning that has included the divestment of non-core assets and geographic markets to focus on the Australian and New Zealand markets.
The bank has been investing heavily in digital capabilities and technology infrastructure while seeking to streamline operations and reduce operational complexity.
Customer advocacy groups will likely monitor the implementation to ensure service quality is maintained despite the workforce reductions, particularly in regional areas where bank branch networks have already been reduced.
Union representatives are expected to engage with ANZ management regarding redundancy processes, redeployment opportunities, and support for affected workers during the transition period.
The restructuring timeline extending to September 2026 suggests a phased approach designed to minimize disruption to operations and customer service delivery.
ANZ's move reflects the ongoing transformation of Australia's banking sector as institutions adapt to digital disruption, regulatory changes, and evolving customer preferences for online and mobile banking services.
The bank's commitment to non-financial risk management improvements addresses regulatory expectations following industry-wide issues with compliance and operational risk management in recent years.
Market observers will closely watch ANZ's October strategy update for additional details about business priorities, technology investments, and operational changes beyond the workforce restructuring.
The job cuts represent one of the most significant workforce reductions announced by a major Australian bank in recent years, highlighting the scale of transformation occurring across the financial services sector.
ANZ's emphasis on maintaining customer-facing capabilities while reducing back-office functions reflects industry-wide efforts to balance cost management with service quality in an increasingly competitive market environment.
The bank's approach to supporting affected employees through comprehensive assistance programs may serve as a model for other organizations undertaking similar restructuring initiatives.
Media and analyst enquiries about the restructuring are being directed to Head of Media Relations Lachlan McNaughton and Executive Manager Investor Relations Cameron Davis, indicating the bank's preparation for detailed stakeholder communication about the changes.
The final restructuring charge amount will be confirmed in ANZ's full-year results announcement, providing additional clarity about the financial impact of the workforce reduction initiative.
The Finance Sector Union (FSU) has condemned ANZ for betraying 3,500 workers in one of the world's most profitable banks, saying planned cuts are unhinged, reckless, unncessary and driven by pure greed.
The FSU says it’s a huge insult that workers who have found out their jobs are on the line through a news alert that’s popped up on their phone while they’re making their breakfast or getting the kids ready for school.
This comes off the back of ANZ’s credibility already being in question after a humiliating email botch-up under Nuno Matos’ leadership revealed job cuts to staff once again before they had even been briefed.
This amounts to corporate vandalism and shows utter contempt for staff, customers and the community, the union says.
The cuts would impact 14 per cent of the workforce from its retail and technology divisions.
When asked by the FSU who would do the work of the 3,500 sacked staff, ANZ had no answer — except to say the work would simply stop.
The FSU will be fighting for workers by taking this to the Fair Work Commission.
Finance Sector Union National President Wendy Streets:
“ANZ’s plan is pure corporate vandalism: destroying livelihoods, gutting communities and feeding greed.
“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.
“Workers built this bank and kept it strong through crisis after crisis, now those same workers are being discarded so ANZ executives can feed an out-of-control profit machine.”
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