NAB to cut 2,500 jobs in massive restructure

The National Australia Bank has announced it will slash 2,500 jobs in a major restructure. Photograph: Lukas Coch/AAPView image in fullscreenThe National Australia Bank has announced it will slash 2,500 jobs in a major restructure. Photograph: Lukas Coch/AAPNAB to cut 2,500 jobs in massive restructure Bank says bulk of redundancies will occur before end of year, citing challenging economy, competition and ‘rapid technological change’

National Australia Bank is cutting 2,500 jobs, representing 6% of its workforce, marking another significant round of cuts in a sector heavily exposed to disruption by artificial intelligence.

NAB said in a statement on Tuesday that the bulk of the redundancies would occur before the end of the year, citing a challenging economy, competition and “rapid technological change”.

It is the latest in a series of sector-wide job cuts, highlighted by ANZ’s 3,500-person layoff announced last year, as the big banks trim headcount.

Angel Zhong, a professor of finance at RMIT, said the restructure was part of an industry-wide reset.

“The banks are investing heavily in technology and AI, and redesigning their base workforce for a much more digital banking model,” said Zhong.

“This is not just cyclical cost cutting, it’s structural change.”

Banking sector jobs are among the most exposed to advances in AI, with so-called “cognitive roles”, such as administrative, programming and clerk positions, most at risk, according to a government report released in July.

But financial institutions have rarely referenced AI directly when announcing redundancies amid sensitivities over public and political backlash.

NAB said the changes would reduce duplication and speed up decision making. It also plans to “materially reduce its use of consultants and external contractors”.

The fortunes of Australia’s big banks are closely tied to the property market and broader economy, making their structural shifts a clear barometer for wider corporate layoffs.

The economy has been losing momentum, and unemployment has risen to 4.7%, its highest rate in nearly five years.

The Finance Sector Union national assistant secretary Nicole McPherson said the NAB cuts would have a significant impact “on a workforce already overwhelmed by unmanageable workloads”.

“It will wreak chaos and entrench a culture of anxiety at a bank that seems hell bent on self-destruction,” McPherson said.