Woolworths has announced plans to offshore hundreds of corporate jobs in a bid to slash costs and remain competitive in a challenging retail environment.
Job Cuts Across Key Departments
The supermarket giant's restructuring will affect its workforce of approximately 10,000 employees, with roles in finance, human resources, and information technology being moved overseas. Consultations with affected staff are scheduled to begin on Wednesday morning, though the exact number of positions impacted has not yet been disclosed.
A Woolworths spokesperson confirmed the cuts but declined to specify how many workers would be affected. The move comes as years of financial pressure continue to weigh on Australian households, forcing retailers to compete aggressively for market share.
Company Statement on Cost Pressures
“Our customers are telling us they need more help managing their budgets as growing inflationary pressures impact the cost of living,” the spokesperson said. “To continue our commitment to deliver the dependable low prices and better shopping experiences our customers expect, and to remain competitive with the rapid expansion of international players in the market, we are focused on removing complexity, increasing productivity, and driving efficiency across our business.”
The company noted that it has long had teams located throughout Asia and longstanding managed service arrangements. “We regularly review these to ensure we are accessing the best global capabilities and lowering our costs, to ensure we are offering the best value for our customers,” the spokesperson added. “We expect to open 24 new stores, creating approximately 2,500 roles in the year ahead, across Australia and New Zealand.”
Broader Economic Context
In April, Woolworths warned that prices would rise for up to 12 months due to the fuel crisis, after signalling a hit to its profit margin. Executives told investors the outlook was “more uncertain” and that the company’s earnings would not fall within the upper end of its forecast. The supermarket giant attributed this to the fuel crisis weighing on profits, alongside a plan to freeze prices on 300 items for three months from the beginning of May.
Banking Sector Also Cutting Jobs
Meanwhile, the Australian banking sector has been reckoning with a wave of job cuts and offshoring over the past 12 months. National Australia Bank announced plans to cut hundreds of jobs in Australia, shifting some roles to India and Vietnam. ANZ slashed dozens of jobs at its subsidiary Suncorp in January, a move that incensed the Finance Sector Union. This followed ANZ’s announcement last September of plans to sack 3,500 workers. NAB previously announced 410 redundancies, while Bendigo Bank axed 158 jobs, the Bank of Queensland cut 200 roles, and the Commonwealth Bank of Australia offshored roles overseas.
