Westpac to Cut Over 1,500 Jobs in Major Cost Restructure

About Westpac Banking Corporation Ltd

Westpac Banking Corporation (ASX: WBC) is undertaking a significant workforce reduction as part of a renewed effort to simplify its operations and reduce costs, with over 1,500 jobs expected to be cut across various divisions. The restructuring is part of the bank’s ongoing transformation strategy aimed at becoming a leaner, more digitally efficient institution amid increased competition and margin pressure.

Job Reductions Aligned With Structural Simplification

The redundancies are expected to impact a range of departments, particularly middle and back-office functions, including human resources, finance, technology, and compliance. Westpac has been reviewing its organisational structure over recent months in response to a tougher macroeconomic environment and the need to simplify internal systems that have grown increasingly complex over time.

The company has stated that the changes are necessary to streamline decision-making, reduce duplication, and enhance the bank’s ability to respond quickly to market and customer demands. While exact numbers are yet to be confirmed, the cuts represent one of the largest headcount reductions by an Australian bank in recent years.

Affected employees will be offered support, including redeployment opportunities where possible, career transition assistance, and redundancy entitlements in line with Westpac’s enterprise agreements.

Focus on Digital Transformation and Productivity

The restructure comes as Westpac continues to invest heavily in its digital transformation agenda, aiming to deliver faster, more personalised services and reduce its dependence on legacy systems. By automating key processes and consolidating technology platforms, the bank expects to achieve both cost savings and customer experience improvements.

The job reductions will enable Westpac to redirect resources towards its core technology platforms, digital banking capabilities, cybersecurity, and artificial intelligence tools. These areas are seen as critical to maintaining competitiveness against both traditional rivals and digital-native fintech players.

The simplification initiative is also intended to reduce operational risk by limiting fragmentation across business lines and improving consistency in service delivery and compliance.

Cost Management and Operating Efficiency

Westpac has previously committed to reducing its cost base to below $8 billion by FY24, a target that necessitates ongoing restructuring and process optimisation. The bank has already exited or downsized non-core operations and sold off underperforming business units, with the latest job cuts marking a continuation of this strategy.

By lowering fixed overheads and reducing managerial layers, the bank expects to create a more agile, customer-centric operating model. While the upfront cost of redundancies may weigh on near-term earnings, management sees the changes as essential to long-term margin improvement and return on equity.

The restructure reflects broader trends across the banking sector, as institutions seek to rebalance their cost structures in response to persistently low interest rates, elevated regulatory costs, and digital disruption.

Customer-Facing Investment Prioritised

Despite the workforce reductions, Westpac remains committed to strengthening its customer-facing operations, including retail banking, business lending, and customer service. The bank has been rolling out new digital tools to improve onboarding, product access, and customer support while maintaining physical branch presence in key regional markets.

Management has emphasised that the restructure will allow Westpac to reinvest in front-line roles and technology, improving speed, convenience, and personalisation for its customers. The focus remains on deepening customer relationships, driving loyalty, and building trust—particularly in a period of heightened scrutiny around bank service quality and ethical conduct.

Market Reaction and Strategic Implications

The market has responded cautiously to reports of the job cuts, with shares trading relatively flat as investors digest both the short-term costs and long-term benefits of the restructure.

The job cuts are not expected to impact Westpac’s core banking services, but they do highlight the urgency of organisational reform in a rapidly evolving sector. As one of Australia’s Big Four banks, Westpac’s actions will also set a tone for peers facing similar efficiency and digitisation pressures.

Longer term, the success of the restructure will be measured by improvements in Westpac’s cost-to-income ratio, operational efficiency, and customer engagement metrics.