How and why will the merger of St George and Westpac lead to staff cuts?

Question

...and how will it affect their stakeholders and future performance? I'm discussing this for my Business Studies oral and I need ideas. First best answer gets 10 points.

Thanks in advance!

Answer 1

Mergers almost always ensure that there are duplicate functions.  For example, companies only need one accounting department, one HR department, and other administrative functions.  One reason for merging is the ability to get rid of these duplicates and save money.

Different stakeholders are impacted in very different ways.  Stockholders benefit because the company becomes more profitable.  Employees (who are also key stakeholders) will now be fearful of cutbacks, and performance & morale are negatively impacted.