National Australia Bank expects to reduce its internal workforce by up to 2,500 roles or ~6% in FY27. Up to 1,500 of those roles will go before the end of 2026, and the bank expects to recognise a restructuring charge of approximately $300m pre-tax in FY27.
NAB announced the plan on 20 October 2026 in a filing to the ASX, and says it will also materially reduce its use of consultants and external contractors.
The charge relates to redundancy, redeployment and organisational redesign costs. It compares with a charge of approximately $80m pre-tax incurred in each of FY25 and FY26.
According to the bank, the cuts are part of a broader review to identify the nature of the workforce required to support its strategic ambition. It expects the changes to make it a stronger bank, better placed to handle the risks and opportunities of more challenging economic conditions, increasing customer expectations, competitive intensity and rapid technological change. NAB links the freed capacity to its priorities to grow business banking, drive deposit growth and strengthen proprietary home lending.
Group CEO Andrew Irvine pointed to where the reductions will fall. “We are particularly focused on reducing the size of corporate functions. There will be no material impact to customer-facing banking roles.”
Irvine said the bank has also made deeper changes to senior management positions, which he said will broaden leadership responsibilities across the bank.
“Our ambition and strategy remain unchanged. We will improve productivity, risk outcomes and execution to be a simpler and more efficient bank,” he said. Irvine said the changes as a whole are expected to improve outcomes for customers by reducing duplication and speeding up decision making.
NAB will commence consultation with colleagues and the Finance Sector Union. Affected staff will be offered consultation and engagement opportunities, redeployment and reskilling opportunities, career transition support, and redundancy entitlements in accordance with applicable industrial instruments and employment obligations.
NAB has not said how much it expects to save, how the 2,500 roles split across the business, or how far it will cut its use of consultants and contractors. Further details on the cost outlook for FY27 will be provided with its FY26 results on 5 November 2026, the bank says.
Herald View
Cutting corporate functions while promising no material impact on customer-facing banking roles is the right order of operations, but NAB has priced the pain before showing the payoff. A $300m charge in FY27 is close to four times the approximately $80m it incurred in each of FY25 and FY26, so this is no routine trim. Until 5 November brings a cost outlook, investors are holding the bill without the receipt.
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