National Australia Bank (NAB) said on Oct 20 that it will cut up to 2,500 jobs, or about 6% of its workforce, in 2027, in a bid to simplify its operations while grappling with a more challenging outlook for credit growth.
Australia’s biggest business lender said up to 1,500 roles would go by the end of 2026, with reductions largely targeting corporate functions rather than customer-facing banking roles. It also plans to materially reduce its use of consultants and contractors.
The overhaul will result in a restructuring charge of about A$300 million (S$268 million) before tax in 2027, related to redundancy, redeployment and organisational redesign costs.
The charge compares with about A$80 million before tax incurred in each of 2025 and 2026, NAB said.
Chief executive officer Andrew Irvine said the changes were aimed at improving productivity, risk outcomes and execution, while making the bank “simpler and more efficient”.
The bank said the measures would create capacity for continued investment in key priorities, including growing business banking, increasing deposits and strengthening its proprietary home lending business.
The job cuts follow a period of mounting pressure on Australia’s banks as weaker housing activity, rising competition and higher operating costs weigh on earnings.
In August, NAB warned that housing credit growth would slow sharply in 2027 following the federal government’s property tax reforms, which the bank said had dampened demand from homebuyers and investors.
At that time, Irvine said the combined effects of geopolitical uncertainty, higher domestic interest rates and tax changes were creating challenges for customers.
NAB employed 41,880 people globally as of Sept 30, 2025, according to its latest annual report.
The move follows a similar restructuring drive at rival ANZ , which last year announced plans to cut about 3,500 jobs by September 2026 as part of a simplification programme under EO Nuno Matos to reduce duplication and lower costs. REUTERS
