Bendigo and Adelaide Bank Cuts Jobs Targeting $65M Savings
Synopsis
Bendigo and Adelaide Bank has announced a major workforce reduction tied to new strategic partnerships with Infosys and Genpact. Despite reporting a 13% rise in quarterly earnings to $137.9 million, the bank is cutting costs to achieve annual savings of up to $75 million by 2028. The shift toward AI and outsourced IT services is part of a broader "productivity" strategy aimed at simplifying operations. This article explains the bank's financial performance, the impact on technology staff, and the long-term move toward a digital-first banking model.
Bendigo and Adelaide Bank has announced a fresh round of job cuts as it paves the way to a growing digital future. The bank is working with tech giants across the world to automate its systems, and as a result has announced a major overhaul of its technology and operations teams.
Key Highlights
- Bendigo has entered into long-term agreements with Infosys and Genpact.
- Employees in the technology and business operations divisions will be laid off.
- This comes after a robust third quarter net profit, which totaled $137.9 million.
- Bank shares rose 5.4 % on news of stronger profits and cost-cutting.
- The bank will incur almost $95 million in one-time spending to implement these new technology systems.
Jobs axed as Bendigo Bank seeks to modernise technology
Bendigo and Adelaide Bank is cutting jobs as it embarks on a plan to upgrade its technology. In order to achieve this, the bank has entered into a seven-year partnership with Infosys for IT services and a six-year agreement with Genpact to manage backlog business operations. If those deals deliver advanced tools like artificial intelligence (AI), they will also leave most of the bank’s current technology and support staff out of a job.
CEO Richard Fennell said while those decisions that impact our people are never easy, changes are unavoidable in order to keep the bank competitive. These latest cuts continue a trend from late 2025, when the bank started to lessen its dependence on contractors and moved into a digital-first model. The vision is of a simpler, more efficient bank that employs automated software to perform functions previously carried out by employees.
Transitioning to AI and Digital-First Talent
It is also moving away from traditional office-based roles and investing heavily in digital talent. Bendigo Bank will make AI tools, including Gemini, available to its remaining staff to help expedite coding and everyday activities, thanks to collaboration with Google Cloud and Infosys. This is a strategy called operational simplification, which is supposed to allow the bank to scale without adding headcount.
For customers, the bank says these changes will improve their digital experience, including faster onboarding, or opening accounts online. But unions have previously cautioned that downsizing in technology and mortgage assistance could extend the wait and shorten service time for people who would instead like to talk to an actual person. The bank asserts that these technological upgrades are a new expectation among modern customers.
Financial Gains vs. Human Cost
Investors are taking the news in stride, even as it’s a tough blow to the workforce. The bank posted earnings of $3.2 billion for the quarter ended March 31, 2026, a gain of 12.%. That profit was powered by fatter lending margins, in other words, the bank is making money on loans compared to what it pays for funding. The move is of the bank to increase its profits even more in coming years by cutting jobs now.
The bank said it would begin to see the financial impact of cuts in jobs in fiscal 2027. They expect to be saving between $65 million and $75 million annually by 2028. The savings are a key component of the bank’s 2030 strategy, which calls for it to be a leaner, more profitable business that is centered on high-tech partnerships instead of having a large local work force.
It’s Part of a Broader Trend in Australian Banking
Bendigo is not the only one making this change. Other Australian banks including ANZ and NAB have also announced thousands of job cuts in their technology and retail divisions in the last 12 months. Because AI and other forms of automation are becoming cheaper, quicker and far more reliable than human employees, experts claim that the killing season for traditional banking jobs has commenced.
The bank’s next phase of execution will now depend on how smoothly it transitions to its new partners, Infosys and Genpact. While for those who remain at Bendigo and Adelaide Bank, work is getting more high-tech, the tidal wave of cuts across the sector has left many feeling uneasy about the future of their careers in finance.
FAQs
- Why is the bank laying people off?
To save costs and get closer to supplying more automated technology and AI.
- Which teams are affected?
Mostly technology and general business operations people.
- Who are the new partners?
Infosys and Genpact are currently running digital systems for the bank.
- Is the bank in trouble?
No, the bank made 13% more profit this quarter than last year! But it wants to do even better.
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