Bank of Queensland has confirmed mass redundancies, announcing the departure of 400 staff as it concedes its long-serving retail banking operation is “no longer sustainable”.
The Brisbane-headquartered company will take control of its 114 owner-managed branches — a decision prompted by customers’ shift towards digital banking in a “simplification of our operating model and management structure (that) will improve productivity”, chief executive Patrick Allaway said.
“Our heritage retail banking operating model that has served us well in the past, is no longer sustainable in its current state in a lower returning environment,” Allaway said.
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“The conversion of our branch network will provide flexibility in our product distribution and improve our ability to optimise margins.
“It represents a substantial change for our owner-managers, many of whom have long tenures with BOQ. We acknowledge, with immense gratitude, their important contribution to the 150-year history of BOQ and will work closely with them to ensure a smooth transition over the coming months.
“This will understandably be a difficult period for our people across the organisation and we are committed to supporting everyone through this process.”
BOQ expects the 400 full-time redundancies, to be made “across the business”, will save it about $50 million a year.
The acquisition of branches by corporate bosses will last until March next year, the company believes.
The Finance Sector Union claims BOQ has already sacked 250 people in the last 12 months.
“Confirmation of a further 400 jobs cut is a devastating blow to workers at BOQ,” national secretary Julia Angrisano said.
“Make no mistake, when BOQ says it’s undertaking simplification, customers and workers know it means job cuts.
“Workers are walking around feeling that they have a target on their backs, waiting for the axe to fall on them.
“Workers are incredibly anxious about their futures and deserve certainty as they make their own plans for themselves and their families.”