Australia & New Zealand Banking Group (ANZ) will cut 200 jobs at its subsidiary in Australia amid slowing credit growth and declining economy. The cuts will be primarily in Melbourne and will affect management and back-office positions in areas of marketing and project management. The job reduction of Australia & New Zealand Banking Group (ANZ) highlight challenges, which are facing the Australian lenders. The largest banks in the region announced that net profit did not meet the analyst estimates amid rising defaults on corporate loans. Australia & New Zealand Banking Group also reduces operating positions in Asian business and in institutional banking, as part of efforts to separation of assets with low returns.
“The changes are in response to subdued economic conditions, low lending growth and the need to simplify our business and improve productivity”, said the ANZ spokesman, Stephen Ries. “The workers would go through a preference and selection process in which they could apply for positions in scaled-down departments. The workers left without new positions would lose their jobs. All affected staff will have access to support services such as ANZ’s career retraining fund and will be able to apply for other roles within ANZ”, added he.
The Australian banks are under pressure to have the right mix of assets since capital requirements increase. Against this background, they are trying to ensure that they have the right cost base. Australia & New Zealand Banking Group, in particular, has already shrunk its Asian operations to promote profitability.
ANZ already shrunk the number of employees in its institutional banking by 6% and reduce its staff in Australian division by 3% during the last fiscal year. The creditor is not yet finished with the job cuts in institutional banking. The lender has frozen hiring new employees in the country. At the end of March the division in Australia had workforce of 8791 employees.