The Australian understands the problems within the tech rollout triggered a deep round of staff cuts as Ms Bayer Rosmarin moved to offset costs. But the mood within Australian Unity has been described as \u201cdiabolical\u201d, after senior leaders were left to break the news of the significant job shedding in early May, just days after Ms Bayer Rosmarin had left for her holiday.<\/p>\n
Ms Rosmarin only addressed the departures a week after they were announced, telling staff of the need for \u201cconsequential focus on finding meaningful cost savings to ensure the sustainability of our business\u201d.<\/p>\n
Many of its staff work across its network of aged-care homes, which were spared the brunt of the first round of job cuts under Ms Bayer Rosmarin. <\/p>\n
But Australian Unity has flagged more to come, saying the mutual was running a review of its operations to ensure \u201cthe 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\u201d.<\/p>\n
Company insiders told The Australian her ill-timed trip was a poor look for the former Optus boss.<\/a><\/p>\n A spokeswoman for Australian Unity said it was \u201cprogressing a strategic review of its portfolio, cost base and operating model, with a focus on becoming simpler and more efficient\u201d. <\/p>\n \u201cAs part of this the group is taking disciplined action to reduce external spend, including consulting and advisory costs, simplifying processes and ways of working, and reshaping parts of the organisation,\u201d she said.<\/p>\n Australian Unity is trying to pull its scheduling and customer database systems into one, built around a Salesforce platform.<\/p>\n In the past Australian Unity used a string of ageing and antiquated technology systems, some of which were at the end of their life. The only problem is its Salesforce push is not working, according to insiders. <\/p>\n The Australian has been told that in recent weeks Ms Bayer Rosmarin has approved plans to pour even more funds into the Salesforce project, which was originally slated to cost $20m and completed within 12 months when it was announced in 2022.<\/p>\n An Australian Unity spokeswoman said its Home Health division has been investing in a \u201cmulti-year transformation\u201d, which aims to deliver \u201cnew technology capability, while integrating the myHomecare (2024) and Plena Healthcare (2025) acquisitions and preparing for the new Aged Care Act\u201d.<\/p>\n Australian Unity did not respond to specific questions about the project or its cost blowout.<\/p>\n On April 29, Australian Unity told investors it was \u201ccommitted to developing a clear pathway to optimise the Group\u2019s portfolio and capture the significant opportunities ahead\u201d.<\/p>\n But this was only after warning its Wealth & Capital markets business had seen a rocky 2026, while its home health operation had been hampered by delays in federal funding.<\/p>\n Then Ms Bayer Rosmarin went on holiday, telling management to kick off a brutal cost cutting program that has seen some 10 per cent of head office staff slashed. <\/p>\n An Australian Unity spokeswoman said Ms Bayer Rosmarin\u2019s leave and travel was \u201cin accordance with company policy and approved by the board\u201d.<\/p>\n Staff have reported some teams being cut in half, and others told The Australian they were concerned the depth of the job losses was so deep it put at risk current regulatory compliance practices.<\/p>\n The cuts came after global advisory Boston Consulting presented a plan to Ms Bayer Rosmarin after a review of Australian Unity. She was previously a partner at Boston Consulting. <\/p>\n Ms Bayer Rosmarin arrived back on Tuesday last week, a few days after the axe fell.<\/p>\n Ms Bayer Rosmarin is well-known for her time at Optus, where the government criticised her public approach to a cyber attack which was one of the largest cyber security failures in Australian history.<\/p>\n She took on the top job at Optus on quitting Commonwealth Bank, after missing out on the chief executive role to rival Matt Comyn. She splits her time between the mutual\u2019s Melbourne headquarters and her Sydney home.<\/p>\n
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