National Australia Bank (NAB) expects to cut up to 2,500 internal roles in fiscal 2027 (FY27), putting roughly 6% of its workforce at risk as the Australian lender reshapes its operations.
The bank expects up to 1,500 of those reductions before the end of 2026. It expects to recognize a pre-tax restructuring charge of about A$300 million in FY27 for redundancies, redeployment and organizational changes. NAB incurred about A$80 million in pre-tax charges in each of FY25 and FY26.
The cuts will focus on corporate functions. NAB expects no material impact on customer-facing banking roles and plans to reduce its use of consultants and contractors. It says a simpler structure should improve decisions and customer outcomes.
NAB cited challenging economic conditions, competition and technological change. Chief Executive Andrew Irvine said the bank’s strategy remained unchanged and that the restructuring was intended to improve productivity and risk outcomes.
In its August trading update, NAB reported a 15% quarterly fall in home-loan applications. The bank cited higher interest rates, tax changes and geopolitical uncertainty as challenges for customers.
Reuters reported that Finance Sector Union national assistant secretary Nicole McPherson criticized the job cuts, arguing they would not make NAB simpler. The bank said it would begin consultations with the union.
Rival ANZ announced plans in 2025 for about 3,500 employees to depart by September 2026 as part of a restructuring intended to reduce duplication and costs. Reuters reported that NAB shares fell nearly 2.5% on Oct. 20, the steepest decline among Australia’s four largest retail banks in that session.
NAB is due to provide more detail on its cost outlook with its FY26 results on Nov. 5.
