Bank of Queensland will cut 400 full-time jobs across the business in order to save $50 million a year, a decision it has attributed to simplification and digital initiatives enabling productivity gains.

The news came as the bank confirmed it's returning all of its owner managed branch network - 114 locations - back to corporate branches. The decision was attributed to BOQ's ongoing digital transformation and is being positioned as a way to align the branch footprint with its digital and relationship banking model, with consolidation opportunities as customers continue to shift to digital channels.

BOQ expected to recognise a restructuring charge of $25m - $35m post tax, that will impact FY24 statutory net profit after tax, but said the initiative will deliver an annualised saving of approximately $50 million, in addition to BOQ's previously stated simplification target of $200 million cost savings by FY26.

Managing Director & Chief Executive Officer Patrick Allaway said: "The further simplification of our operating model and management structure will improve productivity and reduce operational risk. This will understandably be a difficult period for our people across the organisation and we are committed to supporting everyone through this process."