Australian Unity to shed 195 roles

Australian Unity is reducing its workforce by 195 positions due to underperformance stemming from delays in government support for its Home Health platform and the integration of several businesses.

"Australian Unity is progressing a strategic review of its portfolio, costs and operating model, with a focus on becoming simpler and more efficient," a statement provided to Financial Standard read.

"As part of this process, Australian Unity will reduce its workforce by 195 positions.

"Importantly, these changes will not affect frontline care roles or the delivery of the essential services our customers and communities rely on each day."

The strategic review was noted in an announcement on April 29, as the group shared its full-year FY26 results were "expected to be lower than anticipated" forecasted in February 2026 due to heightened cost to cover ongoing delays on tech transitions.

Specifically, the integration of W&CM's investment bonds businesses, Australian Unity Life Bonds (formerly IOOF) and Lifeplan Australia Friendly Society, have experienced delays in implementing technology transformation, and the expected benefits of this program are now anticipated to commence in FY27, as "no transactional activity is expected to be completed and recognised prior to 30 June 2026."

"The aggregate gross asset value of funds under management has also been adversely affected by market volatility and net outflows in asset classes with negative performance during FY26, leading to lower than anticipated revenues," the announcement said.

Meanwhile, performance has also been affected by delays in recent reforms and delays in the government's roll out of the Support at Home program.

Australian Unity said this delay and capped funding has constrained new customer onboarding and revenue growth, while the previously increased workforce capacity has further impacted margins.

"The costs associated with these impacts, which are necessary to establish an efficient, compliant and scalable service delivery model, have been higher than anticipated in FY26," it said.

"Decisions to reduce roles are difficult and we acknowledge the impact this has on each affected individual.

"This review is about ensuring the group is set up for long-term success and able to continue to provide the essential services its members and customers rely on each day."