Australian Unity to cut 195 jobs
- Workforce reduction: Australian Unity cuts 195 positions nationwide
- Care services: Frontline home care roles remain protected
- Financial pressure: Support at Home impacts earnings outlook
- Industry concern: Largest home care provider faces challenges
The ASX-listed mutual, Australia's largest home care provider, has announced job cuts as part of a strategic review of its portfolio.
The reduction in Australian Unity's workforce by 195 positions, or 2% of the 10,000 workforce, will not affect frontline care roles or the delivery of the essential services to customers, according to a statement from the business.
Trading update
Australian Unity issued an earnings downgrade in April, revealing Support at Home’s introduction had materially impacted earnings. In its Wealth and Capital Markets business, the mutual had also experienced delays implementing new technologies and seen net capital outflows.
“The Group has commenced a review of its cost base focused on ensuring the group delivers future cash profits,” Group MD and CEO Kelly Bayer Rosmarin said at the time.
Kelly replaced former Group MD and CEO Rohan Mead in December. Mead retired after a 21-year tenure.
Provider of essential serivces
A spokesperson for Australian Unity told The Weekly Source this week the review is about ensuring the Group is prepared for "long-term success" and able to "continue to provide the essential services its members and customers rely on each day".
The Group acknowledged its important role as a key provider of essential services.
“Australian Unity operates essential and valued services in market segments with long term structural demand across health, wealth and care."
Cuts will be felt across the board: Union
The job cuts would see some teams within Australian Unity reduced to less than half their number, said The Finance Sector Union (FSU), rejecting claims that frontline services would not be affected.
“Employees know better and understand that cuts of this scale will only hollow out the organisation and be felt across the board,” said FSU national secretary Julia Angrisano.
Australian Unity reviewed its residential aged care operations in 2023, ultimately deciding to remain in the sector.
As well as having more than 50,000 home care clients today, Australian Unity owns 12 residential aged care homes co-located among its 22 retirement villages.
