ANZ has announced plans to significantly reduce the size of its management team and change the group’s overall structure, resulting in a pared back model to face the “new reality” of the economic environment.
A statement from ANZ said the new business model responds to “the changing landscape for financial services” and shifts ANZ away from “a collection of standalone product and customer businesses”.
ANZ chief executive Mike Smith said the new structure reduces “the management layers between me and the staff who serve our customers” from up to 12 layers of management, to around seven.
Smith said the move to cut several layers of management from the group’s structure “lowers risk by reducing bureaucracy and complexity”. He said it would also result in greater transparency and accountability within the group.
Along with the staff cuts, ANZ announced plans to progressively consolidate support functions, including technology and operations, across the group.
The group also flagged its intentions to establish a global wealth segment.
“Initially ANZ’s existing wealth businesses including the joint venture with ING and Private Banking will be part of the Australian division, and the Asia Pacific division will develop the Asian wealth business,” a statement from the group said.
ANZ will now organise around its three geographies — Australia, New Zealand and Asia Pacific — as well as its institutional client base. Each ‘geography’ will focus on two customer segments: retail and commercial. The whole operation will be co-ordinated globally.
As part of the restructure, Brian Hartzer has been appointed chief executive officer of Australia, Graham Hodges chief executive of New Zealand and Alex Thursby chief executive of Asia Pacific.
The group’s institutional division will also be led in the interim by Thursby until a permanent appointment is made.
Hartzer will also be the global segment leader for retail, while David Hisco, currently group managing director for commercial banking in Australia, will be the global segment leader for commercial.
Margaret Payne has been appointed to the newly created role of group managing director — strategy and marketing. Both Hisco and Payn will join the ANZ management board.
The new structure is effective 1 October 2008 with the new model to be established in the coming months.
