BNZ Norths lays off 28 staff

Press, 6 September 1989, Page 43

BNZ Norths lays off 28 staff

NZPA-AAP Sydney BNZ Norths, Ltd, the Bank of New Zealand’s Australian broking arm, has laid off 28 staff. Chief executive, Mr Lloyd Coakley, said the sackings were part of a normal strategic review, and had nothing to do with the current major revamp of the bank’s Australian operations. BNZ, which lost SNZ633 million for the year ended March 31, said last month after the resignations of its chief executive in Australia, Mr Leigh ScottKemmis, and financial management chief, Mr Graham Brown, that it planned a review in Australia. Mr Coakley said BNZ Norths, one of Australia’s largest private-client brokers, had made its own assessment of performance over the past few months and laid off advisers who were not writing enough business. The sacking of 28 people cut staff numbers to 142, but no jobs were lost in the broker’s “back office” — where trades are processed. The lay-offs also had nothing to do with depressed trading volumes on the Australian stock exchange over the last few months, Mr Coakley said.

Turnovers had picked up substantially since the hard times several months ago. “Last month we had our best month ever in the 18 months I’ve been here,” he said. “We, like most other brokers in Australia, had not been making money while volumes were low — but we have been for the last two or three months.” The cuts were part of an over-all reassessment of the firm’s staff and business to weed out and improve areas not performing up to scratch. “The result is that we’ve affected the bottom line substantially, and decreased revenue very slightly,” Mr Coakley said. BNZ Norths would retain its emphasis on private client business, and also keep its money market, options and corporate advisory businesses. Those sacked from the broker join an estimated 800 who have lost jobs in their industry since the crash. Tiny turnovers which lasted months forced eight firms out of business, including publicly-listed Jacksons, Ltd. But improved trading volumes have recently brought a little more optimism to the industry, which had been bracing itself for more mergers, collapses and job losses.