The ANZ Group Holdings Ltd (ASX: ANZ) share price is under the spotlight after announcing job cuts.
ANZ shares its job cut plan
The major ASX bank share announced “changes to simplify the bank, strengthen its focus on its priorities and deliver for its customers”.
ANZ said it expects to cut approximately 3,500 employees across the business by September 2026, while also reducing engagements with consultants and other third parties.
The bank said it will treat its people with “care and respect”, with an aim to conclude the process as quickly as it can. It will provide a “comprehensive support program”, including individual staff support, providing career advice and planning support services, as well as access to a career training fund.
ANZ said there will be limited impacts to frontline customer facing roles, its people and investments will be focused on priorities that best support customers and its strategic direction.
It does intend to accelerate its focus on non-financial risk management practices, while reducing the bank’s duplication and internal complexity.
ANZ also said it will meet its commitments to the Federal and Queensland Governments with the acquisition of Suncorp Bank and the branch network.
The ASX bank share said its FY25 second half is expected to include a restructuring charge of approximately $560 million before tax.
Management comments
The ANZ CEO Nuno Matos said:
My ambition is for ANZ to be the best bank for our customers, while ensuring we sustainably meet the performance expected over the long-term.
We know this will be difficult news for some of our staff. While some of these changes have already commenced, we are committed to working through the impacts as quickly and safely as we can, with both care and respect for our teams affected.
We are opening in a rapidly evolving and highly competitive banking environment. As we continue our strategic review, we are eliminating duplication and complexity, stopping work that doesn’t support our priorities and our sharpening our focus on improving our non-financial risk management practices across the bank.
Our changes also include ending or reviewing our engagements with consultants and other third parties, impacting around 1,000 managed service contractors.
Final thoughts on the ANZ share price
This represents a large upfront cost, though it could mean significant cost savings over the longer-term.
If these changes won’t impact the bank’s performance, then it may be worthwhile, but thousands of people not working at the bank any more is a big reduction. Will this hurt how much work can be done, or the culture at the bank? Time will tell.
ANZ is not the ASX share I’d buy first, but this could help its bottom line.
