NAB to cut up to 2,500 jobs in 2027 in major cost overhaul

National Australia Bank (NAB) said on Tuesday it will cut up to 2,500 jobs, or about 6 per cent of its workforce, in 2027 as part of a sweeping cost overhaul amid a more challenging outlook for credit growth (Straits Times).

The bank, Australia’s biggest business lender and third-largest home lender, said up to 1,500 roles would go by the end of 2026. The cuts will target corporate functions — strategy, transformation and project management, back office, compliance, risk and business services — and senior management, with no material impact on customer-facing roles, according to chief executive Andrew Irvine (HRD Australia).

“These changes are expected to improve outcomes for customers by reducing duplication and speeding up decision making,” Irvine said, adding that the bank would “treat every person with dignity and respect” (Starts at 60).

The overhaul will produce a pre-tax restructuring charge of about A$300 million in 2027, related to redundancy, redeployment and organisational redesign — up sharply from about A$80 million incurred in each of 2025 and 2026. NAB also plans to materially reduce its use of consultants and contractors, with further detail due at its full-year results on 5 November.

NAB stock fell nearly 2.5 per cent on Tuesday, the biggest drop among Australia’s “Big Four” banks. The Finance Sector Union criticised the timing, with national assistant secretary Nicole McPherson calling the cuts “disgraceful” so close to Christmas.

NAB employed 41,880 people globally as of 30 September 2025. The move follows rival ANZ’s 2025 plan to cut about 3,500 jobs under chief executive Nuno Matos.