National Australia Bank plans to cut 2500 internal jobs in fiscal 2027
Key Facts
National Australia Bank announced on 20 October 2026 that it plans to cut up to 2500 internal jobs in fiscal 2027 as part of a plan to change its operating model and simplify operations. The planned cuts represent about 6% of its workforce, according to the bank's statement outlining the scope of the internal staff reductions. The plan includes eliminating up to 1500 jobs before the end of 2026, with cuts starting before the current year ends. Chief Executive Andrew Irvine said the downsizing would focus particularly on corporate roles. The bank cited tougher economic conditions among the reasons for changing its operating model, as it faces declining home loan applications and rising expenses.
The reorganisation also extends to the use of outside providers, with the bank planning to significantly reduce its use of external consultants and contractors, according to its statement. On its leadership structure, Irvine said the bank had deliberately made deeper changes to senior management positions. He added that these changes "will broaden leadership responsibilities across the bank", explaining the purpose of adjusting those roles. By contrast, he said the job cuts would have no material impact on customer-facing banking roles, according to the Australian Broadcasting Corporation. The Finance Sector Union expressed deep dismay at the redundancy announcement, the broadcaster reported, in response to the workforce reduction plan.
The restructuring follows a decline in the bank's Australian home loan applications during the third quarter of fiscal 2026, according to its latest quarterly business update. Applications for housing finance in Australia fell 15% compared with the second fiscal quarter. On returns from banking activity, net interest margin stood at 1.79% in the third fiscal quarter, according to the same update. That was 2 basis points below the quarterly average recorded during the first half of the fiscal year. Quarterly expenses rose 4% compared with the first-half quarterly average, excluding the large notable item, alongside the lower margin and decline in home loan applications.
Against the backdrop of the economic conditions cited by the bank, its monthly business survey recorded a decline in Australian business confidence in September 2026. The business confidence index fell 4 points, according to the survey, which the bank publishes to track business conditions. That took the index to minus 13 points, with confidence remaining in negative territory during the month. The business conditions index held steady at minus 1 point in the same survey, compared with the decline in the confidence index. The September survey results preceded the October announcement of the bank's reorganisation, which cited difficult economic conditions among the reasons for changing how it operates.
Australia's labour market also recorded a decline in employment in September, according to Australian Bureau of Statistics data published in October. Employment fell by 39,300 people during the month, according to the bureau's seasonally adjusted figures. That reading covers the change in employment across Australia, while the bank's announcement defined the scope of its plan as its own internal jobs. In outlining how the reorganisation would affect the institution, Irvine distinguished between corporate roles and banking roles that directly serve customers. The cuts focused on corporate roles, with the chief executive stressing that the impact on customer-facing jobs would not be material, according to the bank's statement and the Australian Broadcasting Corporation.
On the financial side of the plan, the bank expects restructuring costs of about A$300 million before tax, according to the Australian Broadcasting Corporation. In its previous quarterly update, the bank had set a productivity savings target for fiscal 2026. It aims to exceed A$450 million in those savings, according to its third-quarter update. The productivity target relates to fiscal 2026, while the announced programme to cut internal jobs extends through fiscal 2027. The bank is scheduled to announce its annual results for fiscal 2026 on 5 November 2026, according to the date set in its financial calendar.