Australian bank AMP offshores jobs, cites ‘cheaper labor costs’
SYDNEY, AUSTRALIA — AMP, a prominent Australian bank, has announced its decision to offshore 20 Australian jobs, following in the footsteps of Westpac’s recent move to relocate 190 local positions to the Philippines.
The Finance Sector Union (FSU) revealed that the affected roles at AMP include 10 customer service positions and six specialist home loan roles.
Impact on AMP employees and customers
Nicole McPherson, FSU national assistant secretary, expressed concern over the decision, stating, “This is a terrible outcome for AMP workers and their families, and for AMP customers.”
She highlighted that once these jobs are moved offshore, AMP customers seeking assistance will no longer be speaking to someone in Australia.
AMP confirmed that the decision was driven by the pursuit of “cheaper [labor] costs” overseas and the need to “simplify” its business.
In an interview with Yahoo Finance, the company spokesperson acknowledged the difficulty of the changes but emphasized their necessity, saying, “These changes, though difficult, are essential as we simplify AMP’s business and ensure we are best placed to continue to deliver competitive products and services for our customers.”
Financial performance and business strategy
Despite the job cuts, AMP reported a 15.1 percent increase in underlying net profit after tax, reaching $236 million for the 2024 financial year. However, the company’s statutory net profit after tax saw a significant drop of 43 percent to $150 million, attributed to losses from the sale of its Advice business and business simplification expenses.
AMP Bank, which represents a quarter of the company, experienced a 22.6 percent decline in profits to $72 million. These financial results underscore the company’s focus on cost reduction and simplification strategies.
Concerns over employee protections
The FSU raised “serious concerns” about AMP’s approach to workers’ conditions. McPherson noted that AMP had halved the cap on redundancy pay without consulting workers last year. She warned, “AMP’s CEO boasts of their commitment to ‘simplification and cost reduction’ which in the absence of employee protections is ominous for its workers.”
As AMP moves forward with its offshoring plans, the company stated it would support affected employees through redundancy packages and resources to help them find new opportunities. The decision reflects a growing trend in the Australian banking sector, as financial institutions seek to reduce costs and streamline operations in an increasingly competitive market.
