Suncorp tipped to retrench workers

QUEENSLAND’S largest company Suncorp is tipped to cut up to 10 per cent of its workforce as part of a major restructure.

According to reports, Bain & Company has been hired to review the business as part of Suncorp CEO Steve Johnston’s plan to make the company more efficient.

Between 5 and 10 per cent of the 13,500 workforce are tipped to leave the business.

A Suncorp spokesperson on Monday would not confirm any plans to cut jobs. But the spokesperson said the company was continuing to “realign teams around our new operating model” announced in July. “Ongoing change is likely as we continue to implement the new model and given the challenging environment,” the spokesperson said.

In July, Suncorp said COVID-19 had resulted in faster adoption of digital channels by customers and “new, more innovative and agile internal ways of working.”

Key changes under the model include combining a number of insurance and group functions to create a “more streamlined and efficient organisation” and the fast-tracking of digital and automation capabilities.

Bain and Co did not respond to a rquest for comment.

The Finance Sector Union said it had not been informed of any job losses at Suncorp.

The insurance and banking giant is Queensland’s largest company, with a market cap of $11.7bn. Shares in Suncorp rose 9c to $9.16 on Monday.

Last month Suncorp said it achieved a full-year group net profit after tax of $913m, including a $285m after-tax profit from the sale of its Capital SMART and ACM Parts businesses, and the $89m non-cash impairment charge relating to its banking platform.

Mr Johnston (pictured) said the group’s $749m cash earning was down 32.8 per cent as a result of reduced profit in its insurance and banking and wealth divisions. “It has been a challenging 12 months for Suncorp and for the customers and communities we support,” he said.