Australia & New Zealand Banking Group will cut about 200 jobs from its local workforce in response to poor economic conditions, the bank says.

The bank advised staff of the redundancies on Tuesday morning, with the cuts mostly coming from its Melbourne office and targeting back-office workers in areas such as marketing and project management.

"The changes are in response to subdued economic conditions, low lending growth and the need to simplify our business and improve productivity," ANZ spokesman Stephen Ries said.

Mr Ries said workers would go through a "preference and selection" process in which they could apply for positions in scaled-down departments.