📬BOQ Plans Job Reductions to Create a Simpler Specialist Bank

The Bank of Queensland has announced 400 job cuts and told the ASX it is working on creating a "simpler specialist bank".

The Details:

• The company streamlined its operating model as it evolved. Simplification and de-fitification of strategic pillars shall see a reduction of 400 FTEs and enhance productivity. This shall run until September 5.

• These decisions affect team members, and to that, the group agrees. BOQ is helping the affected parties find redundancies or redeployment.

• A restructuring charge of $25–35 million after taxes is expected, which will impact the F24 statutory nett profit after taxes.

• Together with the $200m in coast savings by FY26 that BOQ had previously stated as a simplification target, this initiative will deliver annualised savings of approximately $50m.

What Finance Sector Union says:

The bank's plans for job losses by the Bank of Queensland—BOQ—and sprung on workers yesterday are not only disrespectful, but it will have implications for customers and the service they get from the bank.

BOQ management told the Finance Sector Union yesterday that all bank divisions would suffer a 400 role reduction. These are in addition to the 250 job losses that have already been axed in the past 12 months. It brings the total number of job losses at BOQ to 650.

There has been a consultation period that was suggested to be two weeks with the union by management, which is not enough for such a big change.

Why it matters:

BOQ suddenly announced job cuts with less-than-adequate union consultation; workers' livelihoods, jobs in question. Reduced staff numbers will also lead to disruption in quality service delivery to customers.

Bottom line:

BOQ also has to take care of its workforce and make sure that redundancies are done in as open and careful a manner as possible. Enough union consultation can lessen the impact of redundancy upon the workers and the clients.