Commonwealth Bank's Great Offshoring Deception: When 'Redundancies' Aren't Really Redundancies
So Commonwealth Bank has finally admitted what many of us suspected all along - those 283 “redundancies” weren’t really redundancies at all. They’ve just shuffled the work offshore to India, where they now have a staggering 6,800 employees. The audacity of it all really gets under my skin.
Let me be clear about what’s happened here. CBA told 283 Australian workers their jobs were no longer needed, paid them redundancy packages (hopefully), and then quietly moved those exact same roles to cheaper overseas workers. This isn’t restructuring or efficiency - it’s corporate sleight of hand, and frankly, it should be illegal.
The whole thing reminds me of those real estate agents who underquote property prices. Everyone knows they’re doing it, it’s technically against the rules, but enforcement is so weak that it might as well be legal. One commenter hit the nail on the head when they pointed out that we have decent employment rights in this country, but they’re worth nothing if regulators never step in to enforce them.
What really frustrates me is that this practice is essentially subsidised by Australian taxpayers. Think about it - we lose income tax revenue from those 283 workers, we potentially pay unemployment benefits, and meanwhile CBA continues to profit from our economy while contributing less to it. Someone suggested a 20% tax on offshore salaries, and honestly, that sounds like a bloody good start.
The technology sector, where I’ve spent most of my career, has been dealing with this for years. I’ve watched countless DevOps and development roles get moved offshore, often with disastrous results for project quality and communication. One person shared their experience working on payment systems integration with CBA’s offshore team, describing the constant need to double and triple-check understanding due to language barriers and cultural differences. When you’re dealing with financial systems that millions of Australians rely on, is saving a few dollars really worth the risk?
Banks occupy a special position in our economy. They’re not just any private company - they benefit from government guarantees, regulatory protection, and public trust. CBA is one of the most profitable banks in the world, yet they’re still chasing every dollar they can squeeze out of Australian workers. It’s the kind of short-term thinking that prioritises next quarter’s profit margins over long-term stability and social responsibility.
The solution isn’t rocket science. Several countries have successfully implemented policies that make offshoring less attractive. Heavy payroll taxes on offshore work, requirements to pay redundancy even when work continues overseas, or minimum salary thresholds for temporary work visas could all help level the playing field. The problem is political will - big business fights these measures tooth and nail, and governments are often more concerned with keeping headline inflation down than protecting local employment.
There’s also the looming question of AI automation. Some argue that these offshore jobs will soon be replaced by bots anyway, which adds another layer of complexity to the debate. But that doesn’t excuse what’s happening now, and it certainly doesn’t justify misleading Australian workers about the nature of their job losses.
The most galling part is that this probably won’t lead to any meaningful benefits for CBA’s customers. Interest rates won’t drop, fees won’t decrease, and service quality - as evidenced by recent outages - might actually get worse. We’re seeing all the downsides of offshoring with none of the theoretical benefits.
While I’m frustrated by CBA’s deception, I’m encouraged by the public reaction. People are finally calling out this practice for what it is - corporate greed disguised as business necessity. If we want to preserve decent employment opportunities for Australian workers, we need to make offshoring expensive enough that companies think twice before choosing the overseas option.
The government needs to step up and implement real consequences for companies that abuse the redundancy system. Until then, we’ll keep seeing more of these “redundancies” that aren’t really redundancies at all. And frankly, we deserve better from institutions that profit so handsomely from our trust and our economy.