Westpac's latest job cuts not AI-driven, spokesperson says

By Anjali Singh and Kumar Tanishk

Oct ‌22 (Reuters) - About 140 ​roles ​affected by workforce changes at Australian lender Westpac this week were part of a broader organisational restructure, not AI-driven job cuts, a ‌spokesperson told Reuters on Thursday.

The Finance Sector Union, which represents bank ⁠and finance workers in the country said in a separate statement earlier in the day that ‌Westpac had joined larger rival National ‌Australia Bank in accelerating the rollout of "job-destroying AI".

• The spokesperson said Westpac notified the FSU of the changes on Monday, a day before NAB announced ​plans to cut up to 2,500 jobs as part of efforts to simplify operations and reduce costs

• Australia's banking industry has undergone significant workforce changes ⁠in recent years as lenders streamline operations and rein in costs

• The changes come against the backdrop of ​a softening labour market, with Australia's jobless rate rising to 4.7% in September after a prolonged period of high interest rates

• "These ​changes are not related to AI but rather ‌a broader organisational restructure that's been underway for some time," the spokesperson said on Thursday

• The changes are likely to be ⁠down to "duplication cuts in risk, institutional and finance, not roles displaced by a model," said Hersh Oberoi, global research director at Balfour Capital Group

• The FSU added that more ⁠than 10,000 banking jobs had been lost over the past two years and warned that further ​cuts could add pressure on workers already carrying heavier workloads

• "A lack of strong regulatory guardrails for AI is another factor adding to workers' sense of vulnerability," the union added

• Oberoi said ‌AI is likely to have a limited effect on jobs in the Australian banking industry over the next six months but ‌a substantial one over three to five years, with the first impact seen by ⁠contractors and consultants

• Westpac shares ended ‌0.4% higher at A$35.68. ​The stock is down about 7.6% year to date

(Reporting by Anjali Singh and Kumar Tanishk in Bengaluru; Editing by Sherry Jacob-Phillips and ‌Ronojoy Mazumdar)

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