The S&P/ASX 200 Index (ASX: XJO) is back in positive territory so far this Tuesday, if only tentatively. At the time of writing, the ASX 200 has inched 0.12% higher. But let's talk about a major constituent of the ASX 200 – the Commonwealth Bank of Australia (ASX: CBA) share price.
CBA shares are having a fairly disappointing session. At present, this ASX 200 bank stock is up just 0.06% to $98.51 a share. But earlier this morning, its share price dropped as low as $97.69 – a fall of more than 0.6% at the time.
That stands in stark contrast to CBA's banking stablemates. At the time of writing, the Westpac Banking Corp (ASX: WBC) share price is happily in the green, up 1.07%, while National Australia Bank Ltd (ASX: NAB) shares have gained a rosy 1.23%. ANZ Group Holding Ltd (ASX: ANZ) shares reflect the benchmark index at 0.12% higher.
So this begs the question: why is the CBA share price seemingly getting singled out for punishment this Tuesday?
What's up with the CBA share price on Tuesday?
It's hard to say with certainty. There hasn't been any official ASX news or announcements out of CBA itself today. However, there has been another development we can point to that might be influencing investors' mindsets this Tuesday.
According to the Financial Sector Union (FSU), CBA has notified the union that it intends to launch a job-cutting restructuring program. The union has revealed the job cuts will see 221 roles impacted, with 88 employees to be retrenched, and the others redeployed. Those facing retrenchment will largely come from "back-office locations in Sydney, Perth, Brisbane, Melbourne and Canberra".
This follows the 251 employees that were reportedly retrenched in June.
The FSU is understandably not too impressed by this development. Here's some of what FSU assistant secretary Jason Hill had to say:
How can the CBA justify cutting hundreds of jobs at the same time it is making record profits. CBA staff tell the FSU they are already overworked and the latest job losses are sending morale to rock bottom…
This is no way to run the biggest bank in Australia – these slash and burn tactics are designed to cut costs, increase profits and take the whip to those who remain.
The latest profit figures come from the hard work our members have put in over the past year. It is appalling that after all that effort, instead of being rewarded, these staff are losing their jobs.
So it's hard to know whether these alleged job cuts are having an impact on the CBA share price today. Investors often celebrate 'cost cutting' announcements from ASX shares, as fewer jobs mean lower wage bills for a company. But, conversely, perhaps investors aren't too enchanted by the idea of a CBA-FSU stoush right now.
Either way, it's not a great day for the CBA share price and this ASX 200 bank share's investors.
As it stands today, CBA shares remain down 2.5% over 2023 so far, as seen in the chart below:
