Gutted: BOQ decision to slash 400 jobs a brutal blow for rural customers
Bank of Queensland says the decision to cut its workforce by up to 400 roles is part of a plan to become a simpler and leaner business in light of industry wide cost pressures.
The regional bank also announced on Thursday it would convert all 114 of its owner-managed branches to corporate operations by March to simplify its distribution channels.
Managing director and chief executive Patrick Allaway acknowledged the shift represented a substantial change for owner-managers, many of whom had long tenures with the bank.
āWe acknowledge, with immense gratitude, their important contribution to the 150-year history of BOQ and will work closely with them to ensure a smooth transition over the coming months,ā Mr Allaway said.
He said changes were necessary as part of a difficult process to provide a compelling customer proposition while improving shareholder returns in an environment of rising costs and industry wide margin compression.
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āOur heritage retail banking operating model that has served us well in the past, is no longer sustainable in its current state in a lower-returning environment,ā Mr Allaway said.
Bank of Queensland downgraded its forecast for return on capital from 9.25 per cent to 8.0 per cent for 2025/25.
Those affected by the lay-offs with receive redundancy and possibly redeployment opportunities, the bank said.
The lay-offs are expected to cost the bank between $25 million to $35 million, but result in an annual savings of about $50 million.
With regard to bank branches, Bank of Queensland said a quarter of its retail customers were now on its new digital platform, but it was committed to maintaining a physical presence in key markets.
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