Australian bank Westpac is axing 188 jobs in its IT department as part of a cost-reduction programme that will see it outsource more functions.
According to the Financial Services Union (FSU), the cuts will mainly hit tech staff in Sydney and Adelaide as the bank replaces their roles with outsourced and offshore providers over the next 18 months.
News of the cuts comes just days after Westpac boss Gail Kelly confirmed plans to overhaul its sourcing strategy.
The FSU says the plan is baffling, noting that the bank has previously taken back 600 jobs it had outsourced to HP in Adelaide because outsourcing "failed".
"Short term cost savings don't add up in the long run, and Westpac should recognise that this is also the case with this latest decision to outsource and offshore IT jobs," says the union.
Meanwhile, another Australian bank, ANZ, has completed an overhaul of its IT department, with several executives, moving on, according to the Australian newspaper.
Head of technology for global shared services, operations and human resources, Baden Roberts, head of technology for finance, tax and MIS, Phil Fisher and head of major programs, fund transfer pricing and liquidity, Jon Hrbek, were among 13 people to depart.