- calendar_today September 3, 2025
In a move that could stoke debate on job cuts in banking, Australia’s largest bank has been ordered to rehire 45 workers after claiming their positions were made redundant by the introduction of AI. The move came after the bank was accused of misleading staff and the public over a new chatbot tool. In a decision that will have ramifications for other banks, the Commonwealth Bank of Australia (CBA) was ordered by a tribunal to give 45 employees their jobs back.
The case is thought to be the first of its kind, after the Finance Sector Union (FSU) lodged a complaint on behalf of the workers in dispute. It centers on CBA’s decision to announce that positions would no longer be needed, before later reversing the position, following an inquiry by the Fair Work Commission tribunal.
CBA argued that recent redundancies had been made necessary by the launch of a new AI-driven “voice bot,” which had reduced incoming calls to the bank by around 2,000 a week. With less work to do, the bank said there would no longer be the need to employ as many people. The decision was revealed to dozens of long-serving employees, some of whom had worked for the bank for as many as 40 years.
The union representing the affected employees has challenged that decision, arguing that volumes had not fallen at the time the cuts were made. They say that, on the contrary, there had been a significant increase in calls at the time, and that management had been scrambling to respond by redeploying managers and incentivizing overtime.
With the two sides at an impasse, the FSU referred the issue to a tribunal, where it argued that CBA had failed to adequately explain its logic in making the roles redundant. The union further alleged that CBA was in fact seeking to move some of the work to India. The apparent decision to offshore positions was all the more suggestive given that the bank also announced it was making additional hires in the country around the same time.
In its arguments before the tribunal, CBA admitted that it had overlooked a significant fact when making its decision. According to a bank representative’s own testimony, they were aware that call volumes had increased significantly at the time of the layoffs, a fact which they failed to take into account. “The result of this error meant the roles were not redundant,” the CBA admitted in the tribunal.
The decision saw the bank swiftly offer an apology to those affected and concede that the roles would be offered back to workers if they so desired. In a statement to the Australian Financial Review, CBA said that 45 workers “have been offered the opportunity to return to their previous roles or take up alternative positions within the business, as well as a redundancy package.” The spokesperson added that “We have apologized to the employees concerned and acknowledge we should have been more thorough in our assessment of the roles required.”
Responding to the U-turn, the FSU has described the outcome as a “massive win” for its members, while cautioning that the damage has already been done. “This has been an absolute disgrace by CBA, who should be held to account for the damage they have done to the lives of these long-serving staff,” said the union in a statement. “Our members have already missed out on weeks of income, with some now unable to pay bills and living in fear.”
While the bank has admitted to its mistake, there has been no indication that its plans to adopt artificial intelligence will be slowed. On Friday, CBA announced a new partnership with OpenAI that will be used to develop advanced generative AI tools. The bank will focus on using this tool to improve scam detection and fraud prevention, as well as to help its teams provide more personalized services to customers. The bank has maintained that this new tool will be used to augment its workers and embed the “responsible use of AI.” That may not be enough to convince workers who feel they’ve already been let down.
The case is set against a wider backdrop of uncertainty. Across the industry, banks are thought to be on the cusp of mass automation, with estimates from Bloomberg Intelligence suggesting up to 200,000 jobs could be lost across the sector as banks increasingly look to automate back office, middle office, and operations teams over the next three to five years. Financial institutions are racing to implement artificial intelligence across the business, but the CBA case shows that missteps early on will prove costly and can damage trust and confidence among both staff and customers.
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