Big bank cuts 90 positions as part of ongoing streamlining efforts
Westpac is slashing its marketing department staff by more than 20% as part of its ongoing program to reduce its cost base to $8 billion by 2024.
Ninety (90) jobs will be affected by the cuts. Of those, about 65 will be eliminated outright, with the remaining 25 phased out through natural attrition, The Australian reported.
The restructure will also affect retainers with three key agencies: Saatchi & Saatchi, FinchCo and social media specialist JUNKEE. All three will remain preferred suppliers, The Australian reported. A couple of smaller marketing agencies will also be affected by the changes.
The reductions in the marketing department will reduce costs and eliminate duplication between Westpac and some of its regional brands. It comes shortly after the appointment of Annabel Fribence as chief brand and marketing officer.
Fribence was recruited from KFC, where she was marketing head for Asia. In her new role, she is responsible for brand and marketing for Westpac, St George Bank, Bank of Melbourne, BankSA and RAMS, The Australian reported.
Fribence said the changes came to allow the bank to create a more centralised brand and marketing model.
“We are consulting with our people on these changes and will support affected employees throughout the process, including with redeployment opportunities,” she told The Australian.
Earlier this month, Westpac pushed forward its cost-cutting program in response to an industry-wide margin tightening, which the bank predicted would continue for the remainder of FY22. Westpac said it had cut its workforce by 1,100 in the three months to December, including 900 third-party contractors and about 200 full-time employees.
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Westpac said it intended to downsize corporate functions by 20% to create a smaller head office, part of a wider plan to make the bank simpler and more accountable, The Australian reported.
“This is key to delivering better services for customers and better results for shareholders,” Westpac CEO Peter King said at the time. “The changes are primarily across head office and support functions, not customer-facing roles. Bringing our workforce closer to the front line, combined with the increases we have already made to the number of bankers, will further strengthen our franchise customers.”
Cost-cutting has been on most major banks’ radars as they feel the pain from a margin squeeze brought on by customers switching to fixed-rate mortgages, intense home loan competition and the build-up of liquid assets to satisfy regulatory requirements.
