NAB to Cut Up to 2,500 Jobs in Major Restructure, Flags $300 Million Cost

National Australia Bank (NAB) plans to cut up to 2,500 jobs by mid-2027, representing approximately 6% of its workforce, as part of a major restructuring programme. The bank expects to eliminate up to 1,500 roles by the end of 2026 and has flagged a pre-tax restructuring charge of around $300 million.The announcement, lodged with the Australian Securities Exchange (ASX), forms part of NAB’s efforts to simplify its operating model, reduce duplication and better align its workforce with growth and technology priorities. The bank is expected to provide further details in its full-year results announcement on November 5, 2026.
NAB Targets Corporate Functions and Senior Management
Chief executive Andrew Irvine said the restructuring would focus particularly on reducing corporate functions and making deeper changes to senior management positions. The changes are intended to broaden leadership responsibilities and speed up decision-making.
NAB also plans to materially reduce its reliance on external consultants and contractors. Irvine said the bank did not expect the changes to have a material impact on customer-facing banking roles.
According to the bank, the restructuring is designed to improve customer outcomes by removing duplicated work and making operations more efficient. However, the scale of the proposed reductions is expected to affect a significant number of employees.
Technology and Economic Pressures Drive Restructuring
NAB cited challenging economic conditions, rising customer expectations, stronger competition and rapid technological change as factors behind the workforce review. Although the bank did not explicitly identify artificial intelligence (AI) as a direct cause of the cuts, its reference to technological change has raised questions about the potential role of automation in reshaping banking operations.
Swinburne University of Technology governance expert Helen Bird said the announcement raised questions about how much work could be transferred to AI and other technologies, as well as the level of human oversight that would remain.
The restructuring comes amid broader workforce changes across Australia's banking sector. ANZ has undertaken a major restructuring that resulted in thousands of job losses, while Bendigo and Adelaide Bank proposed cutting 137 positions in September.
Union Raises Concerns Over Job Security and Workloads
The Finance Sector Union (FSU) strongly criticised NAB’s announcement, arguing that the reductions could increase pressure on employees who remain. FSU national assistant secretary Nicole McPherson said the cuts risked worsening workloads and creating uncertainty among staff.
Bird also questioned how the bank would deliver the promised efficiency improvements, suggesting that the financial benefits and operational changes required greater explanation.
NAB has acknowledged the difficulties facing affected employees and said it would treat them with dignity and respect. The restructuring's full implications for staffing, operating costs and the bank's longer-term efficiency remain to be seen.
What Investors Should Watch Next
Investors will be watching NAB’s November 5 results announcement for further details on restructuring costs, workforce reductions and the expected operational benefits.
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