National Australia Bank plans to cut up to 2,500 jobs by the end of its 2026–27 financial year, including as many as 1,500 roles before Christmas. The proposed cuts would affect about six per cent of the bank’s workforce, with corporate and support functions expected to bear most of the impact.
NAB announced the restructure to the Australian Securities Exchange on Tuesday, 20 October. It said the changes were part of a broader review intended to simplify the bank’s operating model and respond to tougher economic conditions, changing customer expectations, competition and rapid technological change. Chief executive Andrew Irvine said there would be no material impact on customer-facing banking roles.
The announcement has raised questions about the role of artificial intelligence and overseas staffing. Employees who spoke anonymously to the ABC said they had seen the bank expand work in India and increase automation, and feared these changes were linked to the job losses. NAB’s public announcement referred to rapid technological change but did not explicitly say artificial intelligence was the reason for the cuts.
A leaked workforce plan reviewed by the ABC reportedly shows that one technology team, which has just under 500 positions, could be reduced to about 400 by the end of the 2026–27 financial year. The plan reportedly proposes reducing the Australian-based share of that team from 53 per cent to 40 per cent, while increasing the share based in India from 14 per cent to 30 per cent and in Vietnam from 13 per cent to 20 per cent. These figures relate to the team described in the plan, not the bank’s entire workforce.
One NAB employee, identified by the ABC under the changed name Dylan, said his technology team would have to reapply for jobs during a two-week consultation period, competing for fewer positions. The ABC reported that employees who do not secure roles could finish as early as 2 December or as late as 17 December, depending on the team and process. Another worker, identified as James, told the ABC he had resigned shortly before the announcement because he was worried about the future of his role.
The Finance Sector Union criticised the timing and scale of the planned redundancies. National assistant secretary Nicole McPherson said the cuts would increase anxiety among staff, particularly so close to Christmas. The union also questioned whether reducing the workforce would deliver the operating improvements promised by the bank.
NAB said the restructure would reduce duplication, speed up decision-making and give senior managers broader responsibilities. Irvine acknowledged the changes would be difficult for affected employees and said the bank would provide support. The bank also plans to materially reduce its use of consultants and external contractors.
NAB expects to record a pre-tax restructuring charge of about $300 million in the 2026–27 financial year. The cost is expected to cover redundancies, redeployment and organisational redesign. Further details are due with the bank’s full-year results on 5 November.
Employment experts quoted by the ABC said the latest round of redundancies may reflect cost-cutting and organisational restructuring as well as technology changes. The available evidence does not establish that artificial intelligence alone is driving NAB’s decision. The bank’s announcement identifies several pressures, while staff concerns about automation and offshoring remain distinct from the reasons formally stated by management.
