The Commonwealth Bank of Australia (CBA) has scrapped plans to eliminate 45 customer service roles after pressure from the Finance Sector Union (FSU), which challenged the bank’s reliance on artificial intelligence as justification for the cuts, Bloomberg reported.
Earlier this month, the FSU brought the dispute to Australia’s workplace relations tribunal, arguing that CBA was not transparent about call volumes. While the bank had claimed its new voice bot reduced calls by 2,000 per week, union members said demand was actually rising, with employees working overtime and managers being directed to answer calls.
CBA admitted its original assessment was flawed. “Our initial assessment did not adequately consider all relevant business considerations and this error meant the roles were not redundant,” a spokesperson said. The bank apologized to affected staff and confirmed they would be offered the option of staying in their current positions, moving to other roles, or leaving the company.
The reversal marks a setback for Chief Executive Officer Matt Comyn’s push to lead Australia’s banking sector into advanced AI adoption. CBA recently announced a partnership with OpenAI to deploy cutting-edge technology for customers and employees. Globally, however, banks are confronting similar challenges. According to a Bloomberg Intelligence report, as many as 200,000 banking jobs could be cut in the next three to five years as AI replaces roles across back office, middle office, and operations.
The FSU hailed CBA’s decision as a “massive win” for members, saying the bank had failed to properly explain why roles were being made redundant and was simultaneously hiring for similar positions offshore.
CBA, which employs more than 51,000 people, said it is reviewing its internal processes to prevent similar missteps in the future. Meanwhile, rival National Australia Bank Ltd. is also in talks with the union after acknowledging payroll errors affecting staff.
