ANZ Group Holdings Ltd (ASX: ANZ) shares are sliding today.
Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $32.95. In morning trade on Wednesday, shares are changing hands for $32.76 apiece, down 0.6%.
For some context, the ASX 200 is down 0.5% at this same time.
This follows news of the big four bank's plans to cut some 8% of its current 42,000 staff members.
Here's what's happening.
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ANZ shares fall on restructuring news
ANZ shares are slipping after the bank announced it expects around 3,500 of its employees will leave by September 2026. ANZ also said it will reduce its engagements with consultants and other third parties.
The move is intended to simplify the bank's operations and strengthen its focus on its priorities under recently appointed CEO Nuno Matos, who took over the reins four months ago.
ANZ said that the changes will reduce duplication and internal complexity, adding that there will be limited impacts to frontline customer facing roles.
The bank also said it will meet its commitments to the government regarding its acquisition of Suncorp Bank.
"My ambition is for ANZ to be the best bank for our customers while ensuring we sustainably meet the performance expected over the long-term," Matos said.
"We know this will be difficult news for some of our staff," he added.
As for the potential longer-term benefit for ANZ shares, Matos said:
We are operating in a rapidly evolving and highly competitive banking environment. As we continue our strategic review, we are eliminating duplication and complexity, stopping work that doesn't support our priorities and sharpening our focus on improving our non-financial risk management practices across the bank.
Our changes also include ending or reviewing our engagements with consultants and other third parties.
Matos noted that this will impact around 1,000 managed services contractors currently engaged in business with the bank.
He stressed that the reorganisation will change the way the bank delivers its priorities without changing its dedication to its customer facing bankers "who support our customers day in, day out".
ANZ's second-half earnings are expected to incur a restructuring charge of about $560 million before tax. The bank said the final charge will be included in its full-year results, scheduled for release on 10 November.
ANZ is holding an investor strategy update on 13 October.
With today's intraday fall factored in, ANZ shares are up 4% over 12 months, not including the $1.66 in dividends the bank paid out over the full year.
