Westpac to Cut 1,500 Jobs in 2025 as Bank Accelerates AI and Digital Transformation
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Westpac Banking Corporation (ASX: WBC) is set to cut more than 1,500 jobs—about 5% of its workforce—in what will be its largest round of redundancies in a decade. The move comes as the bank pursues operational simplification and increased investment in technology under its “Unite” strategy.
Job Cuts as Part of Unite Strategy
The “Unite” program was launched in 2023 to consolidate core technology platforms, streamline business processes, and drive down long-term operational costs. According to internal communications and media reports, managers have been asked to prepare for a 5% reduction in headcount across most teams, with roles directly involved in Unite expected to be spared.
Financial Pressures and Cost Efficiency
Westpac reported a 1% drop in cash profit to AU$3.3 billion for the first half of 2025, while staff costs increased by 5%, or AU$184 million, compared to the previous period. The bank’s cost-to-income ratio remains above some of its competitors, heightening pressure to deliver efficiency gains.
Technology Investment and AI Integration
Westpac’s overhaul, led by CEO Anthony Miller (appointed December 2024), prioritizes simplifying systems and modernizing operations, including increased investment in artificial intelligence and automation. The bank has not disclosed details of specific AI technologies being adopted, but sector analysts note that Australian banks are generally deploying AI in back-office automation, customer support, and risk analytics.
Union Reaction
The Finance Sector Union (FSU) has voiced concerns about the planned redundancies. FSU National President Wendy Streets, quoted by multiple outlets, said:
“Westpac employees have faced ongoing uncertainty and significant job losses over the past few years with more job cuts now under a new 'business-led simplification program' called Unite.”
She further commented: “As the new CEO, Anthony Miller had an opportunity to invest in his existing, dedicated workforce. He appears to be choosing not to.”
Timeline and Implementation
While Westpac has not confirmed the exact timeline, Australian media reports indicate that most job cuts are expected to be implemented by mid-2025. Affected departments are likely to include support and back-office functions, while some new hiring is planned for customer-facing roles such as home finance and business banking managers.
Industry Trends
Westpac’s announcement follows similar workforce reductions at other major banks, both in Australia and globally, as the sector shifts towards digital transformation and cost reduction. The Commonwealth Bank of Australia (CBA) cut 163 jobs in May 2025 as part of its own technology investment drive. Analysts expect further adoption of AI and automation across the banking sector.
Support for Affected Staff
A Westpac spokesperson said, “We regularly adjust our workforce based on investment priorities”, adding that the bank will support affected employees through retraining and redeployment opportunities.
Source: Reuters, AdelaideNow, 9News
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