The Commonwealth Bank has announced it will lay off staff by almost 11 per cent in 2016.
Key points:The move follows a report in the Australian Financial Journal which revealed that BCB was struggling to meet demand for its corporate aircraft service, CBSAThe Australian Financial Services Group (AFSG) said the cuts will have an impact on the economy and its workersThe Federal Government says the cuts are “not about cost-cutting” but about increasing the reliability of services in the marketThe Federal government says the changes will be a significant cost-cut for businesses and will not affect existing staff.
“The Commonwealth Bank will reduce its staff by approximately 11 per cenral in 2016,” a spokesperson for the bank said in a statement.
“In doing so, we will be able to deliver more reliable services to our customers.”‘
Burden’ of costs to the economyA spokesman for the Federal Government said the government was committed to providing the best possible service to businesses and their customers.
“With the proposed reductions in our services and services delivery, it is not about cost cutting but about improving the reliability and quality of our services,” the spokesperson said.
“We want the Commonwealth Bank to continue to deliver the services that customers expect of them and we will continue to invest in improving the services we provide.”
The bank also confirmed it would be laying off about 700 staff over the next two years.
The Federal Communications Commission has not yet made a decision on the cuts, but a spokesperson said it was aware of the move.
“Our focus is on meeting the needs of our customers and ensuring our businesses are able to continue providing the services they are already providing,” the Communications Minister, Stephen Conroy, said.
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