ANZ’s chief executive, Nuno Matos, acknowledged the difficulty of his decision to eliminate 3,500 jobs as part of a company-wide restructuring plan. He noted that the process was arduous, particularly as it also involved reducing the company’s senior executive leadership by half.

The bank is currently facing scrutiny over its treatment of thousands of customers, including those who have passed away, as well as accusations of misleading the federal government.

The job cuts are projected to cost ANZ approximately $585 million, significantly impacting the company’s financial performance with a reported $1.1 billion reduction in its half-year earnings.

In a separate development, ANZ was levied a historic $240 million fine after the Australian Securities and Investments Commission (ASIC) found the bank engaged in “unconscionable” conduct while handling a $14 billion bond deal for the Australian government. The bank was accused of inaccurately reporting its bond trading volumes, inflating figures by tens of billions of dollars over nearly two years.

This substantial fine is still pending approval by the federal court.

Despite the challenges, Matos emphasized that these layoffs are intended to streamline the bank’s operations, aiming to bolster its frontline services while reducing its headquarters’ size.

He added that he wanted to maintain a “constructive relationship” with the Finance Sector Union, which had been critical of the bank’s leadership.

“While the bank congratulates itself for raking in $5.7 billion, thousands of its employees are living with anxiety, burnout and dread,” Finance Sector Union national president Wendy Streets said last week.

“We’re hearing from people who can’t sleep, who’ve developed panic attacks, and who dread going to work.

“ANZ’s profits are up, but so is the human cost. The bank has a culture of uncertainty so severe it’s making people sick.”