Bank of Queensland said it would cut 10% of staff as part of a restructure aimed at reducing costs while competition intensifies in the downturn.
The Brisbane-based bank whose business model has come under pressure since the emergence of the credit crunch last year, confirmed the reductions yesterday evening.
"We are working through the process of identifying changes to our business and the subsequent structural changes, and will provide an update to the market at our half-year results in April," said BoQ head of corporate affairs Caroline Dunworth.
BoQ shares fell 13 cents, or 2.0%, to close at $6.44.
The job cuts were part of a broader push announced in December for lower costs that includes "reviewing where in our business we can be more efficient and what functions we can streamline," she said.
"No customer-facing roles will be lost as part of this review."
Bank of Queensland depends on the wholesale credit markets for its funding more heavily than its big four competitors. The cost of funding has risen over the past year and a half because of the global credit crunch, leaving mid-sized banks at a funding disadvantage to their larger rivals which have broader depositor bases.
czappone@fairfax.com.au
BusinessDay
