ANZ starts cutting jobs in institutional banking division

[SYDNEY] ANZ Group Holdings has begun to let go of people within its institutional banking division as an overhaul by newly-installed chief executive officer Nuno Matos ramps up.

The Melbourne-based firm on Tuesday (Sep 2) began cutting so-called middle and back office jobs within that unit, according to two sources familiar with the matter, who asked not to be identified discussing private information.

Precisely how many roles will be eliminated from the restructure remains unclear, and the bank has said that it will update investors on the process at a strategy day in October. Matos told his roughly 42,000 staff last month a priority of his turnaround strategy is to cut duplication of roles and improve the bank’s culture and risk management.

A spokesperson for ANZ declined to comment.

ANZ’s institutional unit, run by Mark Whelan, has been in focus from the country’s financial watchdogs. The securities regulator is investigating the firm’s role in trading of government bonds and McKinsey is conducting a firm-wide review after the banking regulator earlier this year slapped additional capital requirements on the company.

Matos apologised last week following bungled internal communications over departures in its retail division. Planned layoffs were accelerated after automated e-mails were mistakenly sent to staff before they had been notified in person. BLOOMBERG