Australia Markets closed

Commonwealth Bank accused of plans to sack 10,000 staff, shut 300 branches

(Source: Getty)

The Finance Sector Union (FSU) has demanded answers from Australia’s biggest bank over whether it has plans to reportedly slash as many as 10,000 jobs and shutting 300 branches.

In a bid to provide certainty to employees, the FSU has called for CBA CEO Matt Comyn to confirm or deny reports that the organisation would sack 20 percent of its workforce and save $2 billion, as first reported by The Australian.

“It is appropriate that you confirm or deny these reports to ensure workers know where they stand,” FSU national secretary Julia Angrisano said in her letter to Comyn.

“Can you confirm if the CBA is currently making such plans as reported?”

In a statement to media, Angrisano said: “Unconfirmed speculation of this size can only lead to uncertainty and has far-reaching negative impacts on employees.

A reduction in such a high staff count would have a “devastating impact” on bank workers and families across the country, she said.

Not only that, but CBA customers would be “severely affected” by the closure of 300 branches.

“CBA needs to come clean and tell workers what their plans are,” the FSU said.

The major bank revealed its strategy to become a “simpler, better bank” following explosive unfavourable revelations from the banking Royal Commission.

But the rumoured staff and branch cuts would not aid the bank’s bruised public image, Angrisano argued.

“Matt Comyn is on the wrong track if he thinks shutting down branches and sacking staff will enhance the bank’s reputation in the community and increase profits,” she said.

‘Misleading and unnecessarily alarming’

In a statement provided to Yahoo Finance, the major bank described the “media speculation” as “misleading and unnecessarily alarming”.

“CBA is committed to our people and are disappointed that speculation may be repeated as fact,” the statement said.

The bank had indicated a “need to manage costs where it makes sense in terms of efficiency and as part of good business discipline” in its half-year results announcement in February, it said.

“With respect to our branch network, the suggestion that ‘300 of the bank’s network of branches is under consideration’ is incorrect and misleading.

“We remain committed to our decision to limit our review of branches in regional and rural towns during this financial year, given the conditions currently experienced by rural NSW and Queensland.

“We have also told the FSU that we will continue to consult with the union regarding changes that have implications for our employees and will be open and transparent as soon as any decisions have been made,” CBA’s statement said.

‘Simpler, better bank’

CBA had originally planned a spin-off its wealth management and mortgage broking arm, but announced last month that was on hold to focus in implementing the recommendations of the banking Royal Commission.

“CBA has suspended preparations for the demerger in order to support the focus on these priorities,” the bank said in a statement to the ASX in March.

In November 2017, NAB announced it would be shedding 6,000 jobs and create 2,000 new digital-focused jobs by 2020.

But the cuts didn’t stop there – in February this year, NAB confirmed that up to 180 customer service roles would be cut.

More to come.

Make your money work with Yahoo Finance’s daily newsletter. Sign up here and stay on top of the latest money, news and tech news.

  • Wall Street drops on coronavirus fears
    Finance
    Australian Associated Press

    Wall Street drops on coronavirus fears

    A spike in new coronavirus cases in China and other countries has seen a sell-off in US stocks, along with data showing US business activity has stalled.

  • Finance
    Australian Associated Press

    Stocks to watch

    Stocks of interest at the close of trading on Friday, February 21.

  • Australian stocks retreat from record high
    Finance
    Australian Associated Press

    Australian stocks retreat from record high

    The Australian share market has closed 23.4 points lower, but it still ended the week up 8.8 points.

  • Mengniu closer to lapping up Lion Dairy
    Finance
    Australian Associated Press

    Mengniu closer to lapping up Lion Dairy

    The ACCC says Mengniu's proposal to acquire Lion's raw milk processing facilities will not substantially lessen competition in the Gippsland region.

  • Inghams' profit roasted by processing woes
    Finance
    Australian Associated Press

    Inghams' profit roasted by processing woes

    Inghams has reported a 69 per cent drop in first-half profit following setbacks in its processing network.

  • Tourism, education to cop worst virus hit
    Finance
    Australian Associated Press

    Tourism, education to cop worst virus hit

    AMP Capital senior economist Diana Mousina said the Australian economy was looking at an overall hit of about 0.5 or 0.6 per cent from the coronavirus.

  • Adairs shares rise on strong HY sales
    Finance
    Australian Associated Press

    Adairs shares rise on strong HY sales

    Homewares retailer Adairs' half year results show strong sales and a handy acquisition.

  • Mayne pins hopes on pill after $17.5m loss
    Finance
    Australian Associated Press

    Mayne pins hopes on pill after $17.5m loss

    Mayne Pharma posted a $17.5 million half-year loss but its CEO says a new contraceptive pill should be a "game changer" for the drug maker.

  • Mark Bouris' YBR swings to H1 profit
    Finance
    Australian Associated Press

    Mark Bouris' YBR swings to H1 profit

    Mark Bouris says Yellow Brick Road is ready to reap the rewards of its repositioning and cost management over the half.

  • No fun for Ardent Leisure as H1 loss grows
    Finance
    Australian Associated Press

    No fun for Ardent Leisure as H1 loss grows

    Dreamworld operator Ardent Leisure continues to endure tough times and has posted an increased loss for the first half.

  • APRA calls for better bank stress tests
    Finance
    Australian Associated Press

    APRA calls for better bank stress tests

    The Australian Prudential Regulation Authority wants banks to improve their internal stress-testing systems, saying "there are areas for ongoing improvement".

  • Finance
    Australian Associated Press

    AAP Markets report for Friday, Feb 21

    Movements on overseas markets.

  • Finance
    Australian Associated Press

    Stocks to watch

    Stocks of interest at the close of trading on Thursday, February 20.

  • ASX hits new high as Aussie dollar sinks
    Finance
    Australian Associated Press

    ASX hits new high as Aussie dollar sinks

    Australia's share market has hit a record high after a rebound on global market while the Australian dollar hit a nearly 11-year low.

  • iSignthis takes a stake in the NSX
    Finance
    Australian Associated Press

    iSignthis takes a stake in the NSX

    ISignthis plans to take a 20 per cent stake in the NSX as it bids to launch a local version of the tech-heavy Nasdaq.

  • Domain shares slump after challenging H1
    Finance
    Australian Associated Press

    Domain shares slump after challenging H1

    Shares in real estate advertiser Domain have slumped after a first-half weighed down by a tough property market.

  • Medibank H1 profit dips on claims surge
    Finance
    Australian Associated Press

    Medibank H1 profit dips on claims surge

    Medibank's net health insurance claims have risen by $158.7 million to $2.8 billion for the first half, a 5.9 per cent increase from a year ago.

  • Origin hails robust H1 despite profit dip
    Finance
    Australian Associated Press

    Origin hails robust H1 despite profit dip

    Origin Energy's first-half profit is down 25 per cent to $197 million but the company has hailed a strong performance from its Australia Pacific LNG division.

  • Sydney Airport impacted by fires, virus
    Finance
    Australian Associated Press

    Sydney Airport impacted by fires, virus

    Sydney Airport has posted a 42 per cent drop in after-tax profit, saying 2019 delivered some of the toughest trading conditions since the financial crisis.

  • Boral slashes H1 payout as profit sags 40%
    Finance
    Australian Associated Press

    Boral slashes H1 payout as profit sags 40%

    Boral's net profit plunged by $91.5 million in the six months to December 31, weighed down by weak housing construction activity.

  • Lendlease shares lift on H1 profit leap
    Finance
    Australian Associated Press

    Lendlease shares lift on H1 profit leap

    Lendlease shares have hit a two-month high after the multinational property developer said it made a $308 million profit in the six months to December 31.

  • Qantas cuts capacity due to coronavirus
    Finance
    Australian Associated Press

    Qantas cuts capacity due to coronavirus

    Qantas has posted an interim profit slide and says it will reduce capacity to Asia and in the domestic market to weather the coronavirus outbreak.

  • Coca-Cola Amatil lifts FY profit by 34%
    Finance

    Coca-Cola Amatil lifts FY profit by 34%

    Coca-Cola Amatil has improved revenue for the first time in seven years on a 34 per cent full year net profit increase.

  • Star suffers 48% profit drop as VIPs win
    Finance
    Australian Associated Press

    Star suffers 48% profit drop as VIPs win

    Winning VIPs have caused a 48 per cent drop to Star Entertainment's first-half profit and it has warned the coronavirus has had an impact of visitor numbers.

  • Whitehaven profit plunges on coal prices
    Finance
    Australian Associated Press

    Whitehaven profit plunges on coal prices

    Whitehave Coal shares have slumped after it posted a 91 per cent drop in first-half profit due to lower thermal coal prices and curbs at its Maules Creek mine.