Australia’s ANZ Bank announced a significant job reduction plan under its new CEO Nuno Matos, marking one of the largest workforce restructurings in recent years for the banking giant. On September 8, 2025, ANZ revealed it will cut approximately 3,500 full-time positions by September 2026, representing about 8% of its 43,000-strong global workforce.

Nuno Matos, who took over as CEO in May 2025 after leading HSBC’s personal banking and wealth divisions, emphasized that the job cuts are a necessary part of a broader strategy to streamline operations, reduce duplication, and focus on key priorities. “I regret having to make these decisions, but they are necessary for the company’s future,” Matos said during the Financial Review Asia Summit in Sydney. “These choices are incredibly challenging. They will affect our employees and their families and should always be a last resort.” The bank also plans to eliminate another 1,000 contractor roles and reassess engagements with third-party consultants.

The restructuring will cost ANZ an estimated A$560 million (approximately US$369 million) and aims to create a more performance-driven culture by improving efficiency and managing non-financial risks that have previously impacted the bank’s reputation, notably after a bond trading scandal earlier in 2025. Analysts have suggested that the cuts will initially affect profitability only from 2027 onward due to the year-long implementation timeline.

ANZ’s workforce remains larger than those of its bigger competitors, Westpac and National Australia Bank, reflecting years of operational inefficiencies. While the cuts target support and administrative roles, the bank assured minimal impact on customer-facing jobs and committed to preserving roles at Suncorp Bank following its acquisition last year.

However, the announcement has sparked strong criticism from the Finance Sector Union, with National President Wendy Streets calling the layoffs “unnecessary” and describing the bank’s approach as chaotic. She highlighted the lack of clarity on how work will be managed post-layoffs: “When the union asked who will handle the work of the 3,500 employees being let go, the bank had no response. That isn’t a strategy; it’s chaos.”

Employee reactions have been mixed; some express concern about job security in an industry increasingly affected by digital transformation, while others hope the changes will sharpen the bank’s competitive edge. The Australian banking sector is currently undergoing significant disruption, with rivals like NAB also announcing substantial job reductions in technology divisions as part of broader cost-cutting measures.

Looking ahead, ANZ plans to unveil a detailed strategic review on October 13, 2025, with full-year financial results expected in November. Matos signaled that these measures are the first phase of ongoing transformation to position ANZ for long-term growth in a rapidly evolving and highly competitive banking environment.

In summary, ANZ’s announcement of 3,500 job cuts reflects urgent efforts by new CEO Nuno Matos to modernize the bank’s operations, enhance efficiency, and manage risk better. Though painful, these changes aim to stabilize ANZ’s market position amidst fierce competition and shifting industry dynamics. The coming months will be critical in balancing operational restructuring with employee morale and customer service continuity.