SYDNEY, October 20, 2026 â National Australia Bank (NAB) will cut up to 2,500 jobs, including 1,500 before Christmas, in a major restructuring that will affect approximately 6% of its workforce and cost the Australian lender around A$300 million.
The announcement on Tuesday has raised concerns among employees, with the Finance Sector Union condemning the timing of the cuts. NAB chief executive Andrew Irvine said the changes would simplify operations, reduce duplicated work and strengthen the bank’s competitiveness.
NAB Job Cuts 2026: 1,500 Roles to Go Before Christmas
NAB plans to eliminate up to 2,500 internal positions during the 2027 financial year, including as many as 1,500 by December 31, 2026.
The remaining reductions are expected before the financial year ends in September 2027. The bank will also substantially reduce its use of external consultants and contractors, although it has not disclosed how many will be affected.
The announcement creates uncertainty for thousands of employees approaching the holiday season, particularly as individual redundancy decisions and departmental targets have not been fully disclosed.
Corporate Functions and Senior Management Face Reductions
NAB says the restructuring will primarily target corporate functions, duplicated responsibilities and management positions.
Irvine said the bank has deliberately made deeper changes to senior leadership roles, broadening responsibilities and improving coordination between departments.
Customer-facing banking positions are not expected to experience a material impact, according to NAB. However, the bank has not published a complete breakdown of affected departments or locations.
The restructuring comes amid wider employment changes across Australian businesses. Supermarket giant Coles has also been reorganising corporate operations, as detailed in its 2026 job cuts and outsourcing plans.
Finance Sector Union Condemns NAB Layoffs
The Finance Sector Union has strongly criticised NAB’s decision, warning that eliminating approximately 6% of the workforce could increase pressure on remaining employees.
Union national assistant secretary Nicole McPherson described the timing of the cuts so close to Christmas as “disgraceful” and questioned the impact on already demanding workloads.
Irvine acknowledged the difficulties facing affected employees and said NAB would treat workers with dignity and respect.
According to NAB’s official October 20 announcement, departing employees will receive support through consultation, redeployment and reskilling opportunities, career-transition assistance and applicable redundancy entitlements.
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Andrew Irvine Targets Business Banking and Home Lending Growth
NAB says the restructuring will help redirect resources toward three priorities: expanding business banking, increasing customer deposits and strengthening home lending through its own channels.
The bank believes reducing management complexity and unnecessary duplication will improve productivity, risk management and decision-making.
However, it has not disclosed a final annual savings target, making future financial results important for assessing whether the restructuring delivers measurable benefits.
Is Artificial Intelligence Behind NAB’s Job Cuts?
Although artificial intelligence continues to change banking operations, NAB has rejected suggestions that the latest reductions represent widespread replacement of employees by AI.
A bank spokesperson said the changes primarily reflect efforts to simplify the organisation rather than directly replace thousands of workers with technology.
NAB has not attributed a specific number of eliminated positions to artificial intelligence.
NAB Follows ANZ’s 3,500 Job Cuts
NAB’s announcement follows rival ANZ’s restructuring, which involved approximately 3,500 employee positions and another 1,000 contractors.
ANZ chief executive Nuno Matos described those reductions as difficult but necessary to simplify operations and strengthen the lender’s long-term position.
Workforce reductions are also affecting other Australian industries. At Whyalla Steelworks, approximately 500 workers face job losses following plans to permanently close the blast furnace.
NAB Faces A$300 Million Restructuring Charge
NAB expects approximately A$300 million in pre-tax restructuring expenses during FY2027, covering redundancy, redeployment and organisational redesign.
That compares with restructuring charges of approximately A$80 million in each of FY2025 and FY2026.
Investors will be watching whether the changes improve operating efficiency without weakening customer service or internal risk controls.
November 5 Financial Results Will Bring Further Details
NAB is scheduled to release its 2026 full-year financial results on November 5, 2026, when it expects to provide further information about its FY2027 cost outlook.
For affected employees, the most immediate questions concern which departments will lose positions, when redundancy notifications will arrive and whether alternative roles will be available within the bank.
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