Australia’s NAB to Cut Up to 2,500 Jobs in Major Restructuring Drive

By Umesh Dhakal – KNA Canberra

National Australia Bank (NAB) has announced plans to cut up to 2,500 internal roles in the 2027 financial year, representing approximately 6 per cent of its internal workforce, as the lender moves to simplify its operations, reduce costs and increase investment in technology and business growth. The bank expects up to 1,500 roles to be affected before the end of 2026. NAB also plans to significantly reduce its reliance on external consultants and contractors as part of a broader review of its operating model. NAB said the changes are intended to improve productivity, streamline decision-making and strengthen its ability to respond to challenging economic conditions, rising customer expectations, increased competition and rapid technological change.

Corporate functions to face the biggest impact

NAB Group Chief Executive Officer Andrew Irvine said the bank’s overall strategy remained unchanged, with the restructuring designed to make the organisation simpler and more efficient. The bank said it would focus particularly on reducing corporate functions and management positions, while broadening leadership responsibilities and clarifying accountability across teams. NAB does not expect a material impact on customer-facing banking roles, according to its announcement.The restructuring is intended to free up capacity for investment in business banking, deposit growth, home lending and technology initiatives aimed at improving customer outcomes.

Support for affected employees

NAB said it would begin consultations with employees and the Finance Sector Union as part of the organisational change process. Support measures for affected staff are expected to include opportunities for redeployment and reskilling, career transition assistance and redundancy entitlements in accordance with applicable employment obligations and industrial instruments. Chief Executive Andrew Irvine acknowledged that the changes would be difficult for employees and their families, saying the bank would treat affected colleagues with dignity and respect.

Restructuring costs to reach A$300 million

NAB expects to record a restructuring charge of approximately A$300 million before tax in FY2027, covering redundancy payments, redeployment and organisational redesign. This compares with restructuring charges of approximately A$80 million before tax in each of FY2025 and FY2026. The bank said further details on its FY2027 cost outlook would be provided when it releases its FY2026 financial results on November 5, 2026.

Broader implications for the banking sector

The announcement highlights the continuing pressure on major banks to control operating costs while investing in technology, improving efficiency and meeting changing customer expectations.For employees, the proposed reductions represent a significant workforce adjustment. For NAB, the challenge will be to deliver the anticipated productivity gains while maintaining service quality, managing operational risks and supporting affected workers through the transition.

Source: NAB announcement.