ANZ casts technology as jobs' bogeyman

Beverley Head
Monday, 13 February 2012 18:31

Business IT - Technology

Technology and its resultant automation have been cast as the jobs' bogeyman by regional banking giant ANZ which today announced 1,000 Australian jobs were being axed, and warned that more could follow as a result of further automation.

Although technology workers have been largely spared from this round of cuts, the ANZ's Australian CEO Philip Chronican did not rule out further job losses as a result of increased automation, and also suggested that the bank might increase the amount of offshoring it is engaged in as it seeks to shore up profitability.

While the bank has reported a $5 billion annual profit Mr Chronican said that margins were being compressed, which had required the bank to take action in order to remain healthy and profitable.

The 1,000 jobs, which represent about 4 per cent of the bank's total workforce, are understood to be in largely back office roles, rather than customer facing positions. Senior ANZ managers meanwhile, which probably include the bank's CIO, Anne Weatherston, have been warned to expect a salary freeze through 2012.