Westpac to cut 200 teller jobs as bank pivots toward digital services

Westpac announced it will cut 200 teller positions across its branches, redeploying those roles to support home and business lending as customers increasingly use the bank's app, website and ATMs. The move makes Westpac the third bank in as many weeks to announce job cuts, underscoring a broader shift toward digital banking in Australia.

Damien MacRae, Westpac's general manager of retail banking, said in an internal email that the transition aligns with the bank's digital-first strategy and its focus on digital customers. He noted that staff will receive training to assist customers with the bank app and to navigate digital channels as part of the redeployment plan. Westpac has said it will strive to retain as many employees as possible through retraining and redeployment.

The Finance Sector Union criticized the decision, arguing that the cuts would reduce access to essential in-person services for communities. The union’s national secretary, Julia Angrisano, said that communities still rely on face-to-face banking and that workers should not be sacrificed for cost-cutting framed as innovation. The union’s critique reflects ongoing labor tensions as banks push digital strategies.

The Westpac announcement follows a wave of cuts across Australia’s big lenders. National Australia Bank disclosed a reduction of about 410 jobs earlier this month. A day earlier, Australia and New Zealand Banking Group (ANZ) announced a larger package, with about 3,500 full-time roles eliminated and roughly 1,000 contractor positions scrapped. The pace of job reductions highlights the financial sector’s ongoing realignment as institutions invest in technology, automation and online services while reassessing the need for extensive branch networks.

Industry analysts note that the shift toward digital channels intensifies competition for branch-based roles and raises questions about service delivery in communities that rely on in-person banking. Banks say the changes aim to streamline operations and improve service through digital tools, while unions and some customers warn of potential trade-offs in personal assistance and local access to banking.

As Westpac and its peers continue to implement restructurings, customers may experience shorter in-branch interactions and reinforcement of online support avenues. Banks have stressed that training will equip staff to guide customers through digital options, potentially reducing wait times but increasing reliance on self-service platforms. More developments are expected as lenders finalize retraining programs and assess how service levels translate across different regions.