National Australia Bank (NAB) will cut up to 2,500 jobs over the next year, representing around 6 per cent of its workforce, as the Australian lender seeks to simplify operations and reduce costs in a tougher economic environment.

The bank said on 20 October that up to 1,500 roles would be eliminated by the end of 2026, with the remaining reductions expected by September 2027. The largest cuts will affect corporate functions rather than customer-facing banking roles, while the bank plans to reduce its reliance on consultants and external contractors.

NAB expects the restructuring to incur a pre-tax charge of approximately A300million(US209 million) in the 2027 financial year, covering redundancy, redeployment and organisational redesign. This compares with charges of around A$80 million in each of the previous two financial years.

Chief executive Andrew Irvine said the changes would improve efficiency without altering the bank's broader direction. “Our ambition and strategy remain unchanged. We will improve productivity, risk outcomes and execution to be a simpler and more efficient bank,” he said in a statement.

The announcement comes as Australian banks face pressure from weaker housing activity, increased competition and rising operating costs. NAB warned in August that housing credit growth would slow sharply in 2027, following property tax reforms that it said had dampened demand from homebuyers and investors.

NAB shares fell nearly 2.5 per cent on 20 October, recording the steepest decline among Australia's four largest retail banks during the session. The broader S&P/ASX 200 index fell 0.9 per cent, according to Reuters.

The Finance Sector Union criticised the planned reductions, with national assistant secretary Nicole McPherson arguing that they would worsen conditions for employees rather than simplify the organisation. “To take a wrecking ball to 6 per cent of one of Australia's largest workforces this close to Christmas is disgraceful,” she said.

The restructuring follows a similar cost-cutting initiative at rival ANZ, which announced plans in 2025 to eliminate approximately 3,500 jobs by September 2026 under chief executive Nuno Matos. The programme was intended to reduce duplication and lower operating costs.

NAB employed 41,880 people globally as of 30 September 2025, according to its latest annual report. The bank said it would begin consultations with employees and the Finance Sector Union as it implements the changes.

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