(7 March 2012 – Australia) Westpac is ready to cut another 126 jobs, this time from its technology and collections departments and the majority will be from Sydney-based offices.It is reported the jobs will be sent offshore as the bank seeks to reduce costs and bolster profitability.
Westpac said the decision reflected the changes going on in the finance sector.
“Restructuring decisions are always difficult, and are only made after a thorough review,’ said Westpac chief operating officer John Arthur.
‘We are acutely aware of the impact on our people and are committed to supporting our people through this change.
“The financial services industry is undergoing significant structural change as banks strive to become stronger by being more efficient and competitive in serving customers’ needs,” Arthur said.
The latest move follows Westpac’s decision to cut 560 positions in early February, to contain costs and to consolidate staff following the acquisition of St George in 2008.
‘The only reason they are losing their jobs is because our most profitable bank thinks it can now get the job done more cheaply offshore,” said Finance Sector Union national secretary Leon Carter.
Westpac posted full-year profits of A$6.9 billion in the year to September. Earnings, though, rose a less-than-expected $1.4 billion in the final three months of 2011 as demand for financial services weakened across much of the economy.