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

Westpac Banking

Yesterday 10:25

Westpac says ~140 roles affected this week are part of a broader restructure
A finance sector union says over 10,000 banking jobs have been lost over the past 2 years
Westpac shares end 0.4% higher at A$35.68
Adds analyst comment in paragraphs 7 and 10, and the stock's YTD performance in paragraph 11
By Anjali  Singh and Kumar Tanishk
Oct 22 (Reuters) - About 140 roles affected by workforce changes at Australian lender Westpac WBC.AX 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 NAB.AX 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)
 ((anjali.singh2@thomsonreuters.com; tanishk.kumar@thomsonreuters.com))