NAB announces it will cut 2500 jobs by the middle of next year
Unions have slammed one of Australia’s big four banks for axing 2500 jobs in a bid to “simplify its operating model” by the middle of 2027.
News.com.au
October 20, 2026
Union bosses have slammed plans for one of Australia’s biggest banks to slash thousands of jobs, describing its leaders as “detached from the lived experience of their workers”.
The National Australia Bank has confirmed it is cutting 2500 jobs, in what it calls a move to “simplify its operating model”.
It claims the move will improve customer experience by reducing duplication and making banking easier.
“As part of these actions, NAB expects to reduce its internal workforce by up to 2,500 roles or about six per cent in FY27,” the big four bank said in a statement.
“This will include up to 1500 roles before the end of 2026. NAB will also materially reduce its use of consultants and external contractors.”
But the move has been slammed by bosses at the Financial Sector Union of Australia, which has described it is “disgraceful”.
The NAB has announced it is cutting 2500 jobs.
“The FSU is appalled by today’s announcement,” FSA national assistant secretary Nicole McPherson said.
“To take a wrecking ball to six per cent of one of Australia’s largest workforces this close to Christmas id disgraceful and shows that NAB’s leadership is completely detached from the lived experiences of their workers.
“NAB’s public statement today is full of nothing but corporate spin and confirms the bank is in denial about the significant impact these cuts will have on a workforce already overwhelmed by unmanageable workloads”.
Ms McPherson added that the cuts would not improve customer experience or working experience.
“It will wreak chaos and entrench a culture of anxiety at a bank that seems hell bend on self-destruction,” she added.
‘Speeding up decision making’
NAB Group chief executive Andrew Irvine said the changes would help create “a simpler and more efficient bank.
“These changes are expected to improve outcomes for customers by reducing duplication and speeding up decision making”.
“There will be no material impact to customer-facing banking roles,” he said.
“We have also deliberately made deeper changes to senior management positions which will broaden leadership responsibilities across the bank.”
The cuts will make up part of what company bosses describe as a “restructuring” the organisation – a process that is estimated to cost in the region of $300m.
This undertaking will include the cost of redundancy packages, redeploying staff and the organisational redesign.
NAB Group chief executive Andrew Irvine said the changes would help create “a simpler and more efficient bank”.
Mr Irvine said the changes would “simplify work between teams and improve cross-functional processes with clearer roles, priorities and accountabilities for our colleagues”.
“We know this will be a difficult period for our colleagues impacted by these changes as well as the people around them,” he added.
“We will treat every person with dignity and respect.”
It comes after another of Australia’s big four banks – Westpac – announced a restructure project of its own.
However, jobs cuts are expected to be far less severe at Westpac, with the bank insisting just 102 roles have been removed to date.
Following Tuesday’s announcements, experts have called on the company to clarify whether artificial intelligence has had a role in sparking the changes.
Helen Bird, an expert in governance from Swinburne University of Technology, questioned whether the firm was looking to replace roles with AI.
“When announcing cuts of this size, there can be no doubt that the fingerprints of the board of directors are all over this decision. They would have been deeply involved,” she said.
“From an outside view, it does appear that the driving force for these changes is entirely financial, reducing costs, increasing profits.
“The size of the staff reduction suggests something far more ominous.
“What isn’t being talked about, but is absolutely crucial, is the use of technology, including AI, to replace staff involved in administrative, monitoring and oversight functions.
“NAB needs to be upfront about whether it is using AI to replace these roles.”
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