Bendigo and Adelaide Bank Announces Workforce Changes with New Technology Deals
Bendigo and Adelaide Bank has announced plans for job cuts as it enters into strategic partnerships with Infosys and Genpact, focusing on artificial intelligence and technology to enhance productivity. In a statement released on Thursday, the regional bank detailed that these new agreements are projected to cost between $85 million and $95 million in the upcoming financial year.
The bank indicated that these changes will lead to workforce adjustments within its technology teams and business operations areas. CEO Richard Fennell emphasized the difficulty of such decisions, stating, "Decisions that impact our people are never easy. We acknowledge this will be a challenging time for our people and we are committed to leading these changes with compassion, care and respect."
Uncertainty Over Job Numbers and Savings Targets
A spokesperson for the bank did not confirm the exact number of jobs affected, noting that the detailed design of impacted areas is still being finalized. Fennell added, "We will consult with our people impacted by these changes, and we are committed to ensuring the support they need is available. The health and wellbeing of the bank’s people continue to be key considerations in the planning and implementation of these essential workplace changes."
The bank expects these cuts to generate annual savings of at least $65 million starting from the 2028 financial year. This figure represents approximately 10 per cent of the bank's staff costs from the previous financial year, highlighting the significant financial impact of the restructuring.
Strategic Partnerships with Infosys and Genpact
Under the new agreements, Bendigo and Adelaide Bank's partnership with Infosys will span seven years and is designed to improve IT service delivery while providing access to global software engineering and AI capabilities. A separate six-year partnership with Genpact aims to enhance processes, data insights, and risk management.
These moves are part of a broader trend in the Australian banking sector, where lenders are increasingly investing in technology and AI, often leading to job reductions. For instance:
- National Australia Bank cut 170 jobs in March while expanding teams in India and Vietnam.
- Westpac trimmed over 200 jobs in March, with further redundancies anticipated, according to the Finance Sector Union.
- Commonwealth Bank proposed cutting 300 jobs, primarily in technology, in February.
- ANZ began cutting around 3500 jobs and over 1000 contractor roles in September as part of efforts to reduce duplication and complexity.
The announcement underscores the ongoing transformation within the banking industry, driven by technological advancements and efficiency goals.
