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ANZ restructure raises job cut fears
Australian Financial Review Jul 31 2017 11:00 PM
David Marin-Guzman, James Frost
The Finance Sector Union is bracing for the possibility of significant job losses at ANZ as the bank's chief executive Shayne Elliott moves to reassure staff about his dramatic restructure of the business.
Mr Elliott sent out a manifesto to staff on Monday calling for a more "agile" workplace and a revolution of outdated work practices, and on Tuesday will reinforce that the bank's focus is on retail customers in Australia and New Zealand and institutional customers across Asia.
The ANZ CEO, whose strategy has included withdrawing from Asia and selling its wealth management business, has previously said the future of the bank will be smaller in terms of branches and people.
Former Westpac CEO Gail Kelly weighed in on the bank's restructuring plans, urging ANZ and the rest of the industry to "do more" to help retrenched staff transition into the new economy.
"You can't any more say 'well, we're downsizing, and 100 jobs will now be replaced by technology, so cheerio, see you later'," she said at an event in Sydney.
In a video to be sent to ANZ's 46,000 staff on Tuesday, Mr Elliott says: "It's really about intense focus and delivery on those segments and not doing anything else".
"We are totally serious about that focus and it helps to explain why we are exiting, selling, shrinking other parts of the bank because we are determined to be the best bank in those areas alone."
An ANZ spokesman told The Australian Financial Review "we need to manage expenses tightly as well as find more productive ways of working, which is a reality of the current environment".
ANZ's announcement comes as the bank is set to start negotiations with the FSU for a new enterprise agreement ahead of the expiry of the old deal at the end of September.
FSU national secretary Julia Angrisano said the union was seeking information on how ANZ's restructure would impact the bank's workforce.
"There is a real concern for ANZ – this is going to be significant change and whenever change is announced then there will be job losses," Ms Angrisano said. "It's a function of an industry that is going to look really different tomorrow as it does today."
She said the rise of fintech was of high concern to workers, with the Commonwealth Bank recently cutting 150 jobs in its Brisbane mortgage processing operation because the technology allowed the bank to do the work elsewhere.
"We want to see trust and confidence restored in the finance sector. ANZ needs to ensure that any changes it seeks to make benefit its staff, as that is one of the key aspects of rebuilding their reputation."
'Exciting for many, scary for some'
ANZ's workforce has been gradually contracting for many years and dropped 6 per cent from 50,000 full-time employees in 2016.
Earlier this year, Macquarie analyst Victor German said ANZ should be able to reduce its headcount by 25 per cent to 40,000.
In an ANZ podcast, the statement was made that its restructure was about "downsizing to focus on what you are good at".
Mr Elliott agreed to a question in the podcast that the manifesto was a "warning shot to staff" and that staff "have got to get with the program" and if they resisted change there would be no place for them.
"It's a bit of a wake-up call to say that our industry hasn't changed in a long time. What we do is fundamentally the same. I am of the belief that is no longer going to be the case and it is going to be dramatically different. It is exciting for many, but it will be scary for some."
Do more to ease transition: Kelly
Ms Kelly backed ANZ's strategy as "brave and bold" given the industry's "traditionally hierarchical, structured organisations" and "absolutely non-negotiable" areas in risk management and governance.
"I wish them success in what they're doing because they're going down a path of being agile, trying to create work teams and have some autonomy, freedom and space to innovate and design from a customer point of view. I'm sure they'll make some mistakes and have some teething troubles."
She warned there "will be probably fewer people in the industry five years from now and then again 10 years from now".
But she stressed there was "a huge requirement for businesses to actually do more to help people to transition to this new economy".