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The non-major lender has made major changes to its structure, including hundreds of job cuts, as it changes strategy to become a “simpler, specialist bank”.
Non-major lender Bank of Queensland Limited (BOQ) has flagged the removal of up to 400 roles from the business as part of its ongoing transformation project.
Bank of Queensland Group, which comprises BOQ as well as Virgin Money Australia and ME Bank, announced its intention to explore pathways to reduce complexity across the business when it released its 2024 half-year results in April.
In a market update released on Thursday (22 August), BOQ confirmed it would be pushing forward with changes to streamline distribution channels and “focus growth into the business bank, where BOQ has a competitive advantage”.
As part of the changes, 114 owner managed branches will be converted to corporate branches, with the group retaining full ownership and up to 400 roles will be removed.
The release also said the group is supporting growth in its business bank, making a material investment in additional business banker roles. According to the release, 10 specialist bankers have joined the group in the first half of the financial year 2024–25.
These “specialist roles” are designed to support customers and brokers across equipment finance, insurance premium funding, dealer finance, and novated leasing, with a focus on targeted industry sectors including health, professional services, and agriculture.
The release said this investment aligns with BOQ’s strategy to “broaden the revenue mix towards specialist, high-value market segments”, targeting growth corridors across Australia and leveraging the bank’s heritage in Queensland.
These measures would also support BOQ’s shift to specialist segments with higher returns across the group’s business bank and finance company.
BOQ managing director and CEO Patrick Allaway said the bank has long recognised the need to address legacy complexity and structural challenges.
“Through the initiatives announced today, we are taking a significant step forward in delivering a simpler, specialist BOQ,” Allaway said.
“We are committed to providing a compelling customer proposition and improving shareholder returns, and these initiatives support those goals.”
However, BOQ did find itself in the crosshairs of the Finance Sector Union (FSU) national secretary Julia Angrisano, who criticised the decision to cut jobs, saying there had already been 250 job losses at the bank in the past 12 months.
“The Bank needs to come clean on their plan as workers deserve better than death by a thousand cuts. How much are they cutting and what will the final impact on staff and customers be?” Angrisano said.
“It’s not good news for workers or customers, as both are going to suffer. As part of a pledge to the market to deliver $200 million in productivity by 2026, BOQ have already axed 250 jobs. Confirmation of a further 400 jobs cut is a devastating blow to workers at BOQ.”
Allaway acknowledged the change for long-tenure employees and said BOQ would be working closely to ensure a smooth transition in the coming months.
“This will understandably be a difficult period for our people across the organisation and we are committed to supporting everyone through this process,” Allaway said.
[Related: Non-major welcomes new board member]
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