National Australia Bank to cut up to 2,500 jobs by mid-2027
National Australia Bank plans to cut up to 2,500 jobs, about 6% of its workforce, by the middle of 2027. Up to 1,500 of those jobs will go before the end of this year. The bank says customer-facing roles will not be badly affected, but the bank workers' union calls the cuts disgraceful.
National Australia Bank will cut up to 2,500 jobs, or about 6% of its workforce, by mid-2027, the bank said in a statement to the Australian stock exchange, ABC News Australia and the Australian Financial Review reported.
Up to 1,500 roles will go before the end of this year, according to ABC News. The Australian Financial Review reported that chief executive Andrew Irvine told staff another 1,000 would follow early next year. NAB also plans to sharply reduce its use of consultants and outside contractors.
The bank expects a restructuring charge of about A$300 million before tax, with more details due in its full-year results on November 5, ABC News reported. The Financial Review said NAB is expected to report about A$9.1 billion in yearly cash profit.
Irvine said there would be no material effect on customer-facing banking jobs. "We are particularly focused on reducing the size of corporate functions," he said. He said the bank would treat affected workers "with dignity and respect."
NAB said the changes would help it handle "more challenging economic conditions, increasing customer expectations, competitive intensity and rapid technological change," according to ABC News. The statement did not mention artificial intelligence directly. The Financial Review linked the cuts to Australia's slowing economy, weak confidence, falling house prices and rising costs.
The Finance Sector Union said it was "appalled." "To take a wrecking ball to 6 per cent of one of Australia's largest workforces this close to Christmas is disgraceful," said Nicole McPherson, the union's national assistant secretary. A governance expert at Swinburne University of Technology said NAB should explain how much work will be handed to AI, ABC News reported.
Other Australian banks have been cutting jobs too. ANZ has shed thousands of roles in the past year, according to ABC News.
What we know: NAB plans up to 2,500 job cuts by mid-2027, with up to 1,500 this year.
What we don't: Which teams will be hit hardest, and how much of the work will shift to technology.
Where outlets agree ABC News Australia and the Australian Financial Review both report up to 2,500 cuts, about 6% of staff, with 1,500 going by the end of this year.
Where they differ ABC News says NAB's statement cites rapid technological change without naming AI, while the Australian Financial Review ties the cuts to a slowing economy, falling house prices and rising costs.