Westpac is set to cut 200 bank teller positions but will not reduce overall headcount across the business.

According to News.com.au, staff were informed via email on Tuesday (September 23) about the job losses, as Westpac plans to hire 200 bankers for its home lending and small business divisions.

Despite committing to keep branches open, Westpac says the reduction in teller roles is necessary to support its “digital-first strategy”.

However, the finance union has criticised the move as “callous”, arguing that telling staff to encourage customers onto digital platforms is effectively putting them out of work.

Some, but not all, of the 200 affected staff will have the opportunity to retrain as home lenders.

“Because of the investments we’re making, we’ve already started upskilling our people,”

Retail Banking General Manager Damien Macrae told staff in the email.

“In the past 12 months, we have seen 33 of our people take the next step in their career by moving from our branches to become a home finance manager. We expect this number to grow.”

The bank previously announced 1,500 job cuts in May and has allocated US$5 million to a “development fund” for employees impacted by the latest round of changes.

“We’re making these investments because we recognise the nature of the work we do is changing,”

Macrae added.

“As we discussed today, over the coming year we will appoint around 200 more lenders and bankers to achieve our home lending and small business ambitions. At the same time, we will need around 200 fewer tellers and personal bankers’ roles in retail banking.”

Westpac employs 30,000 people across Australia and recruited 5,000 staff in the past year.

A spokesperson said:

“We adjust the composition of our workforce according to our investment priorities. While we continue to invest in extra bankers, other areas may need fewer resources. This means from time to time we make changes that may impact some roles and responsibilities as we actively manage costs and investment. As the skills and capabilities required in banking continue to evolve, so will our workforce.”

The big four banks signed a moratorium in February, agreeing not to close any more regional branches until at least 2027.

In April, Westpac reopened branches in regional NSW, Victoria and Tasmania.

Job cuts in Australian banks have surged this month.

ANZ is set to axe 3,500 staff plus 1,000 contractors over the next 12 months, while NAB announced over 400 technology and enterprise roles would be cut.

Earlier in May, Westpac trimmed 1,500 positions, and the Commonwealth Bank has announced 164 job losses this year.

The Finance Sector Union reports that 7,885 jobs have been cut up to mid-September, a 70% increase in layoffs compared with 2024.

Featured image credit: Westpac

This article first appeared on Fintech News Singapore