CBA backs down on AI-induced job cuts

Commonwealth Bank’s recent job reductions, fuelled by increased AI adoption, have come to a halt following backlash from unions and the Fair Work Commission.

Editor’s note: This story first appeared on HR Leader’s sister brand, Broker Daily.

CBA recently came under fire from the Finance Sector Union (FSU) after it was announced that a total of 90 job roles, including 45 roles in direct banking, were to be axed due to the introduction of a new voice bot system.

The cuts were attributed by CBA to increased investment in AI, which it claimed would make it easier and faster for customers to receive support.

“Just when we think CBA can’t sink any lower, they start cutting jobs because of AI on top of sneakily offshoring work to India,” said FSU national secretary Julia Angrisano.

“Workers want a tech-savvy bank, but they expect to be part of the change, not replaced by it … There is a human cost to this. You can’t just replace frontline jobs with a voice bot and expect the same service for customers.”

Following the backlash and the dispute being brought before the Fair Work Commission, CBA admitted wrongdoing and pulled back on the job cuts.

Staff who were set to be ousted from the major bank are now being offered the chance to stay in their position or take a voluntary exit payment.

Angrisano said this outcome was a “massive win for workers” but reinforced the battle is far from over.

“CBA has been caught out trying to dress up job cuts as innovation. Using AI as a cover for slashing secure jobs is a cynical cost-cutting exercise, and workers know it,” she said.

“CBA likes to talk about being a digital leader, but real leadership means investing in your people, not tossing them aside and blaming the technology.”

A spokesperson from CBA said the company has apologised to affected employees and admitted it “did not adequately consider all relevant business considerations”.

According to The Australian Financial Review, CBA claimed its AI voice bot brought a 2,000 per week reduction in call volumes.

The major bank was reportedly forced to admit this was not the case and leadership “scrambled” to find team members to take calls.

Roundtable to address AI concerns

CBA head Matt Comyn was the only CEO to attend the government’s Economic Reform Roundtable this week, focused on improving productivity.

Treasurer Jim Chalmers said in his opening remarks for day two of the roundtable that the goal is to “maximise the benefits of AI and minimise the risks to workers and communities”.

The event was dominated by discussions of AI and its implications. The consensus was that AI has the potential to boost productivity but needs to be approached cautiously.

Australian Council of Trade Unions secretary Sally McManus said “we shouldn’t just say automatically we are all going to be better off because of AI – we’ve got to make sure we are”.