Commonwealth Bank cuts 120 jobs on AI push

Commonwealth Bank of Australia will cut about 120 jobs in the country as the nation’s largest bank reviews roles and expands its use of AI.

The union said 43 roles are at Bankwest in Western Australia and six were affected by automation.

The move follows another round of about 300 cuts announced two months ago.

Commonwealth Bank launched an A$90 million (US$64.3 million) Future Workforce Program in February to train existing staff in AI.

A spokesperson said the bank had about 49,000 employees after adding staff in the previous financial year.

Last year the bank dropped a plan to replace 45 customer service roles with AI.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

CBA earlier planned to cut 45 customer service roles after rolling out an AI chatbot called “Bumblebee,” then later withdrew those redundancies 1.
The Finance Sector Union challenged CBA’s claim that call volumes were dropping. Union members said calls were rising, overtime was growing, and team leaders were taking calls 1.
Weeks later, CBA cancelled the cuts and apologised to affected staff. Union claims said the bank admitted it had “not adequately considered all relevant business factors” 1.
The toll on staff was clear. A 25-year employee said she had accidentally helped train the chatbot set to replace her 1.

CBA’s A$90 million (US$64.3 million) “Future Workforce Program” was built to help more than 30,000 employees gain skills and move into new roles. It would give staff “more control over how their careers evolve,” said Matt Comyn, CEO of CBA 2.
As CBA introduced the program, the Finance Sector Union said another round of cuts was coming. The union urged the bank to use it to help workers hit by the planned reductions 2.
This leaves a wider problem for companies. Retraining promises over time can clash with job cuts tied to automation and shifts in the roles businesses want.
Beyond CBA, research in the UK found some tech leaders who replaced staff with AI later regretted those cuts, which suggests some moved too fast 1.