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Commonwealth Bank cuts hundreds of offshore contractor roles as AI expands
Commonwealth Bank cut nearly 800 roles as AI handles 90% of customer chats. The offshore contractor reductions save tens of millions but bypass redundancy rules.
Commonwealth Bank of Australia has cut hundreds of offshore contractor roles at a South African call centre as AI increasingly handles customer chat tasks. The shift, which one insider said would save the bank tens of millions in annual operating costs, raises fresh questions about workforce displacement through supplier contracts.
AI takes over customer service work
CBA appointed Ranil Boteju as Chief AI Officer earlier this year, recruiting him from Lloyds Banking Group. The bank also partnered with Microsoft to build an AI-powered messaging platform that triages and resolves customer enquiries. By May 2026, CBA's Rachel Round said the system was handling nearly nine out of 10 customer conversations without human intervention.
Union challenges broader workforce cuts
The contractor reductions are part of a wider restructuring. The Finance Sector Union said CBA has cut nearly 800 roles in 2026, including 276 redundancies in July across technology, operations and human resources. The union lodged a formal dispute with the Fair Work Commission, seeking transparency on the reasons behind the cuts. CBA reported a half-year net profit of $5.44 billion, up 6% year on year.
AI raises new questions for HR
The latest cuts highlight a growing challenge for HR leaders. When AI reduces workloads, organisations can shift the impact through outsourced and offshore contracts. Contractor workforces generally sit outside consultation and redundancy obligations under Australia's Fair Work Act 2009. CBA has acknowledged these challenges. In May 2026, Chief Executive Matt Comyn said, "AI-driven transitions should be managed carefully." He announced a A$90 million Future Workforce Program focused on early role visibility, reskilling and dignified exits. The latest contractor cuts raise fresh questions about whether those commitments extend to outsourced workers.
Why this matters for HR professionals
For HR leaders, the case highlights a broader reality. Workforce displacement through supplier contracts remains workforce displacement, regardless of who employs the affected workers. As AI adoption accelerates, HR teams need to track the full scope of workforce change-including contingent and offshore labour-and ensure reskilling and transition commitments apply to all workers touched by automation. As the CBA case shows, AI for Human Resources now requires a broader definition of the workforce.