Commonwealth Bank has reiterated the need to keep a tight rein on costs but described reports that its workforce could be slashed by a quarter as “misleading” and “unnecessarily alarming”.
CBA shares rose 2 per cent to $71.63 on Friday after a newspaper report that the bank had considered a plan to cut more than 10,000 jobs in the coming years.
Responding to a query from the Finance Sector Union, CBA said the news report was “misleading and unnecessarily alarming” but also noted that the bank remained focused on managing its costs. It did not comment directly on the prospect of its 45,000-strong workforce being slashed by a quarter over several years.
However, it is possible that the total number of CBA employees could fall by several thousand over the coming years, due to the pending sale of its businesses in life insurance, funds management, and the plan to eventually sell out of wealth management and mortgage broking. Natural attrition of employees, and targeted redundancy programs, are also often used by banks to cut costs.