Business & Finance
NAB to slash up to 2,500 jobs in massive restructure
Key Points
National Australia Bank says it will cut up to 2,500 jobs, or about 6 per cent of its workforce, by mid-2027. That will include up to 1,500 roles before the end of this year, NAB said in a statement to the stock exchange. In addition to the internal cuts, NAB also plans to "materially reduce its use of consultants and external contractors".
National Australia Bank says it will cut up to 2,500 jobs, or about 6 per cent of its workforce, by mid-2027.
That will include up to 1,500 roles before the end of this year, NAB said in a statement to the stock exchange.
In addition to the internal cuts, NAB also plans to "materially reduce its use of consultants and external contractors".
The announcement, lodged with the ASX on Tuesday morning, said it's part of "actions to simplify its operating model and better align its workforce to prioritise growth and technology initiatives for customers".
The bank has flagged a restructuring charge of approximately $300 million, pre-tax, with more details to come in its full-year results announcement on November 5.
Australian banks, large and small, have been cutting their workforces, with a major restructure at ANZ leading to thousands of job losses in the past year.
Last month, Bendigo and Adelaide Bank proposed cutting 137 jobs as part of an ongoing restructure.
'Rapid technological change' contributes to cuts
While there was no direct reference to artificial intelligence (AI) in the NAB release, it did refer to "rapid technological change".
"NAB is implementing these changes as part of a broader review to identify the nature of the workforce required to support NAB's strategic ambition in an evolving operating environment," the bank said.
"These actions will help make NAB a stronger bank, better placed to navigate risks and opportunities arising from more challenging economic conditions, increasing customer expectations, competitive intensity and rapid technological change."
NAB chief executive Andrew Irvine said there would be no material impact to customer-facing banking roles.
"These changes are expected to improve outcomes for customers by reducing duplication and speeding up decision making,"
he said."We are particularly focused on reducing the size of corporate functions … We have also deliberately made deeper changes to senior management positions, which will broaden leadership responsibilities across the bank."
Mr Irvine acknowledged it would be a "difficult period" for the employees affected and pledged to treat everyone "with dignity and respect".