CommBank slashes 164 jobs from tech division, despite $5.13bn in half-year profits 

The Finance Sector Union (FSU) recently revealed that the Commonwealth Bank of Australia (CBA) will cut 164 jobs from its technology division – sparking outrage.

The FSU announced that CommBank will reportedly be cutting a total of 164 jobs from its technology division just months after the chair of the big four bank said they needed to ‘make sure we have the most capable engineering and digital talent’.

As reported by 9Now, the bank said more than 12,000 people, including 1,200 new people hired last year, were employed within the technology division. Yet despite these large numbers, a review into the division has led to job cuts.

According to the FSU, more than 150 of the recent job cuts at the CBA are based in Sydney, with the remaining roles in Melbourne, Brisbane, Perth, Hobart, and Tweed Heads.

“On the one hand, the 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,” said FSU national assistant secretary Jason Hall.

“The CBA owes its workers an explanation for why its actions don’t match its words.”

Hall said that the messaging and handling of the situation was poorly handled by CommBank, labelling the explanation behind the cuts as ‘puzzling.’

The message sent to the affected workers read that the decision is based on the bank enhancing capability and that in order to ‘deliver digital customer experiences faster, we will require enhanced skill-sets to support new ways of working’.

“This explanation is almost meaningless and the workers losing their jobs deserve honesty and clarity at the very least. We have written to the CBA seeking clearer answers,” Hall said.

“Like all organisations, we regularly review how we are organised to deliver the best experiences and outcomes for our customers,” a CommBank spokesperson said.

“That means some roles and work can change. Our focus is on providing our growing team with the right skills for the evolving work.

“Our priority is always to redeploy or reskill for a new role or opportunity wherever possible.”

Last year, the CBA cut 105 technology and 116 jobs in retail operations despite just last month posting $5.13 billion in half-year profits.

The union reported that the jobs will be cut from the retail technology, chief technology office, institutional banking, markets technology, and business banking technology functions, with the majority of these residing in its Eveleigh and Harbour Street centres in Sydney.

“This is a very difficult day for Commonwealth Bank workers and the FSU is offering support to anyone impacted. We will provide assistance to our members to ensure they receive the entitlements owed to them,” said Hall.