Westpac Banking Corp, the Australian lender, will reduce its workforce by approximately 300 positions in the consumer and business banking sectors. This decision comes despite the bank's robust profit growth, which coincides with increasing interest rates and surging inflation.

As reported by Reuters, the Finance Sector Union of Australia (FSU) announced on Friday that Westpac, the third-largest bank in the country, is planning to reduce the number of employees in its Consumer and Business Banking Division. The FSU cited an internal memo from Westpac, which was reviewed by the union, as the source of this information.

The prospective job cuts account for approximately 0.8% of Westpac's total full-time equivalent workforce, which stood at 37,476 as of September 2022.

Reuters said that it was unable to independently obtain a copy of the internal memo mentioned. 

Julia Angrisano, the National Secretary of FSU, expressed strong disapproval of the layoffs, stating, "Westpac workers have already been struggling with excessive workload demands, and these cuts mean those who are left behind will need to do more with less.."

In May, Westpac, along with other major lenders such as ANZ Group, National Australia Bank, and Singapore's DBS Group, issued warnings about the potential impact on their net interest margins as interest rate cycles approach their peaks.

During May, Westpac, the second-largest mortgage provider in Australia, announced a 22% increase in its net profit for the first half, amounting to A$4.00 billion ($2.70 billion). This positive result was achieved in a high-inflation environment. Due to a public holiday on Monday, the bank was unavailable for immediate comment.