ANZ Bank will reportedly cut about 3,500 jobs over the next year in a restructuring drive led by Chief Executive Nuno Matos.

Bloomberg reported the overhaul is aimed at cutting complexity, eliminating duplication and refocusing the bank on higher-priority work while restoring investor and regulatory confidence.

The lender expects to book a pre-tax restructuring charge of about A$560 million in the second half of 2025.

The reductions, equal to roughly 8 percent of staff, will be accompanied by the removal of close to 1,000 contractor roles.

ANZ said customer-facing jobs and those tied to its Suncorp acquisition will be spared.

Matos, who joined in May after a long career at HSBC, is said to have a track record of turning around troubled divisions.

Within weeks of taking over, several senior executives departed, including retail chief Maile Carnegie and technology head Gerard Florian.

He has since halted non-essential projects, reshaped management and introduced new risk officer roles across business lines.

The bank remains under pressure from regulators. The Australian Prudential Regulation Authority imposed an additional A$250 million capital overlay over weaknesses in non-financial risk management, while the securities regulator is reviewing ANZ’s role in government bond sales.

Early in the restructuring process, a poorly handled redundancy email forced Matos to apologise, underlining the cultural issues he has vowed to fix.

Analysts expect the overhaul to deliver substantial cost savings over time, though near-term results will be weighed down by the restructuring charge.

Most forecast the benefits will only become visible from 2027.

ANZ shares have climbed about 15 percent this year, outpacing the broader banking index.

Featured image: Edited by Fintech News Singapore, based on image by evening_tao via Freepik