Job cuts on the agenda

When Westpac revealed in its financial results, in November, that staff numbers (full-time equivalents) had fallen by 767 (or two per cent) in the 2010/11 financial year, the bank's chief executive, Gail Kelly, was asked whether the bank was cutting staff numbers.

Kelly said the headcount reduction was part of the normal ebb and flow of the business and was not evidence of a staff reduction program.

National Australia Bank's workforce fell by 533 over the same period.

On Friday, ANZ acknowledged that there was some "belt tightening" at the bank in response to difficult market conditions and this may result in job cuts.

The Finance Sector Union, based on a briefing from the bank, put the number of jobs affected as being "many hundreds", though media speculation over the weekend puts the likely job cuts at ANZ at closer to 1000.

In interviews with Fairfax and News Limited newspapers Phil Chronican, CEO of ANZ in Australia, tied the job cuts to the need to align cost growth with revenue growth.

While not spelled out, revenue growth remains subdued thanks to weak credit growth and the rising cost of funds.