National Australia Bank to cut 2,500 jobs in cost overhaul as credit growth slows

National Australia Bank (NAB) plans to eliminate up to 2,500 positions, or roughly six percent of its workforce, over the next year to streamline operations and cut costs amid declining credit growth in Australia. The largest layoffs will target corporate roles, while customer-facing bankers will be less affected. The bank also intends to reduce its dependence on consultants and contractors.

CEO Andrew Irvine emphasized the bank's commitment to enhancing productivity, risk management, and efficiency. NAB shares dropped nearly 2.5 percent on Tuesday, marking the steepest decline among Australia's four largest retail banks. S&P/ASX 200 index fell 0.9 percent. The bank plans to initiate discussions with the Finance Sector Union, who criticized the job cuts as "disgraceful" and suggested NAB leadership is out of touch with workers' realities.

The restructuring will result in a pre-tax charge of approximately A$300 million (US$209 million) in 2027, accounting for redundancy, redeployment, and organizational reconfiguration expenses. This is considerably higher than the A$80 million pre-tax charges incurred in 2025 and 2026. Job cuts come as Australian banks grapple with weaker housing activity, increased competition, and higher operating costs, which are negatively impacting earnings.

In August, NAB cautioned that housing credit growth would decelerate significantly in 2027 due to federal government property tax reforms, which have reportedly dampened demand from homebuyers and investors. Irvine attributed the current challenges to geopolitical uncertainty, higher domestic interest rates, and tax changes affecting customers.

NAB had 41,880 employees globally as of September 30, 2025, according to its latest annual report. This restructuring follows a similar initiative by rival ANZ, which announced plans to cut around 3,500 jobs by September 2026 to simplify operations, eliminate duplication, and lower costs.