Job lay-offs could be coming to Australia’s sovereign wealth fund in the latest round of tech-related cost cutting to hit the finance sector.
The Future Fund expects to save $10-15 million in costs in the 2026/27 financial year by “maximising the benefits of improved data and technology systems” and renegotiating externally provided services.
The Future Fund Management Agency – a non-corporate government entity which oversees operations of the $335 billion fund – will also review 10 roles across investment and non-investment areas.
This will ensure that staffing “continues to reflect business needs and priorities”, the fund said in a statement on Tuesday.
“In all cases appropriate consultation with relevant staff is being undertaken before decisions about roles are made,” the statement said.
The technology-related savings will shave about five to seven per cent off costs in the next financial year, with further savings expected in subsequent years, the Future Fund said.
Chief executive Raphael Arndt said the fund was “baking in” the benefits and maximising the efficiencies of its technology overhaul.
It follows a string of job cut announcements tied to the use of AI by employers in the financial sector.
Earlier in April, Bendigo and Adelaide Bank announced it would trim down its workforce by hundreds of roles after inking two technology deals.
Dr Arndt said the Future Fund has invested significantly in its data, technology, people, processes and culture since the start of the COVID-19 pandemic, and has identified a “new investment order” reshaping the investment environment.
“Our investment in data and technology and in the systems and ability to use them has been critical to investment performance,” he said.
“Overall, the agency’s costs and staffing level are appropriate for the scale and complexity of our investment objectives, but we need to make sure that remains the case.
“We will continue to assess the resources needed to generate strong risk-adjusted returns in a complex investment environment, making changes where it is prudent to do so.”
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