ANZ to lay off 200 staff, blaming 'economic conditions'

Photo: Fiona Goodall/ Getty.

The ANZ bank is cutting 200 jobs from its local workforce in response to poor economic conditions.

The cuts will be made to its Melbourne office, targeting back-office workers.

The bank’s recent profits haven’t been as good as expected. The ANZ posted a 24% fall in cash profit to $2.8 billion for the six months to March when the market had been expecting $3.6 billion.

The ANZ also cut its interim dividend by 7% to 80 cents a share, the first time the bank has reduced its shareholder payout since the GFC.

Here’s what the bank had to say today.

“The changes are in response to subdued economic conditions, low lending growth and the need to simplify our business and improve productivity,” ANZ said.

“All affected staff will have access to support services such as ANZ’s career retraining fund and will be able to apply for other roles within ANZ.

“ANZ also has an external hiring freeze in place to maximise redeployment opportunities inside the bank.”

ANZ shares were up 1% to $24.54 in early trade.

The layoff comes after ANZ reduced its full-time equivalent staff by 1,256 roles in the six months to the end of March this year. The bank has 48,896 employees.

Last week Moody’s said Australia‚Äôs major banks face a slowdown in earnings growth over the rest of 2016.

Analyst Ilya Serov said the banks face multiple headwinds, including potential further stress in resources-related sectors and regions, a worsening outlook for residential property developments and continued stress in the New Zealand dairy sector.

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