National Australia Bank plans to cut 2500 jobs by mid-2027
Key Facts
National Australia Bank plans to cut up to 2500 jobs by mid-2027 as part of a plan to simplify its operating model, the Australian Broadcasting Corporation reported, citing the bank. The first phase includes cutting up to 1500 jobs before year-end, with implementation beginning ahead of the plan's deadline. The bank said restructuring costs would total about A$300 million before tax. Its measures also include significantly reducing reliance on consultants and external contractors, alongside cutting jobs within the organisation. The stated rationale for the plan is to align staff with growth and technology priorities to serve customers, while simplifying how the bank runs its business.
The restructuring follows the bank's third-quarter trading update, in which it set a target of more than A$450 million in productivity savings during the 2026 financial year. It had achieved savings of A$199 million in the first half of the same financial year, according to its half-year results announcement. On credit, impairment provisions totalled A$706 million in that half. That compares with provisions of A$485 million in the second half of the 2025 financial year, the comparison period cited by the bank. The increase in provisions came in the same period in which the bank recorded productivity savings in its half-year results.
The job-cutting plan was preceded by changes in the allocation of responsibilities within National Australia Bank's executive leadership, according to a separate bank announcement on its management team. Those changes included reallocating most of the responsibilities held by Patrick Wright and Les Matheson. The bank said this would be done by expanding the remits of existing group executives. In October 2026, Shane Conway became group executive for transformation and operations, according to the bank's published description of his responsibilities. His portfolio includes modernising technology and simplifying the organisation, alongside overseeing change and transformation across the group's businesses.
Against the backdrop of the technology push, Chief Executive Andrew Irvine said when announcing the half-year results: "We are investing in areas such as artificial intelligence to drive growth, increase productivity and build skills for the future." The bank's third-quarter update showed expenses rising compared with the quarterly average recorded during the first half of the financial year. That comparison excluded the large notable item, on the basis used by the bank in its update. Reasons for the increase included a change in software capitalisation policy, affecting the accounting treatment of related spending. The bank also attributed higher expenses to increased technology costs, seasonally higher wage costs and investment spending supporting its activities.
Across the Australian economy, the bank's monthly business survey for September 2026 showed the confidence index falling 4 points to -13 points. The survey's employment index fell 3 points to its lowest level in 5 years, according to the bank. In its quarterly survey, Chief Economist Sally Auld said businesses' purchase costs rose 1.2% during the third quarter of 2026. That compared with a 0.5% increase in final product prices, meaning the rise in purchase costs was more than twice the increase in selling prices reported in the survey. Commenting on the gap between cost and price movements, Auld said: "This gap is squeezing profit margins."
In the labour market, the number of employed people in Australia fell by 39300 in September, according to seasonally adjusted figures from the Australian Bureau of Statistics. The seasonally adjusted unemployment rate rose 0.1 percentage points during the month to 4.7%, the bureau said. The calculation of the monthly change in the unemployment rate is based on the unrounded values the Australian Bureau of Statistics uses to compile its figures. On the upcoming disclosure calendar, National Australia Bank is scheduled to announce its annual results for the 2026 financial year on 5 November 2026, according to its shareholder calendar. That will be followed by the next Australian labour market report on 19 November 2026, according to the release date set by the statistics bureau.