Commonwealth Bank to cut jobs from its technology division

Banking giant Commonwealth Bank is expected to cut more than 100 jobs from its technology division.

Some 150 jobs will likely be culled from the bank’s Sydney operations, with the remaining roles to hit Melbourne, Brisbane, Perth, Hobart and Tweed Heads in NSW’s far north.

Finance Sector Union national secretary Jason Hall said the union would press the bank for “clearer answers” on the fresh round of redundancies.

“On the one hand, 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,” Mr Hall said on Thursday.

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

It is understood a letter from the bank to affected employees stated that in order to “deliver digital customer experiences faster, we will require enhanced skill-sets to support new ways of working”.

The final redundancy figure is not certain.

A Commonwealth Bank spokesman told NewsWire the bank would look for redeployment opportunities for affected employees.

“Like all organisations, we regularly review how we are organised to deliver the best experiences and outcomes for our customers,” the spokesman 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 re-skill for a new role or opportunity wherever possible.

“We are working closely with every individual to support them with respect and care.”

Commonwealth Bank is Australia’s largest company with a market capitalisation of $261.7bn.

It boasts a worldwide employee base of some 53,000 and its tech division alone counts some 12,000 employees.

In calendar year 2024, the bank hired 1200 technologists, including engineers, cyber specialists and data scientists, and invested about $1.1bn in tech to supports its operations.

Last month, the company reported net profits of $45.1bn for the six months to December 31, 2024 - a 6 per cent increase on the prior period.

Commonwealth Bank CEO Matt Comyn said the results reflected the bank’s “disciplined operational and strategic execution”.

“Through supporting our customers and investing in our franchise, we have been able to deliver solid results for our shareholders, despite the weaker economic backdrop,” he said.

“Our consistent financial performance demonstrates our disciplined operational and strategic execution and the bank’s deep customer relationships that help us understand needs and risks and deliver superior digital experiences.”