NAB to cut up to 2,500 roles as it simplifies its operating model
On 20 October 2026, National Australia Bank (NAB) announced actions to simplify its operating model and better align its workforce to prioritise growth and technology initiatives for customers. The announcement outlines a NAB workforce reduction and an associated restructuring charge.
NAB expects to reduce its internal workforce by up to 2,500 roles or ~6% in FY27. This will include up to 1,500 roles before the end of 2026.
NAB will also materially reduce its use of consultants and external contractors. The bank expects to recognise a restructuring charge of approximately $300m pre-tax in FY27.
For investors, the announcement points to management acting on cost and productivity while holding its strategy steady. NAB said the changes form part of a broader review of the workforce required to support its strategic ambition in an evolving operating environment.
Andrew Irvine, NAB Group CEO
“Our ambition and strategy remain unchanged. We will improve productivity, risk outcomes and execution to be a simpler and more efficient bank.”
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Where the changes land and where NAB is investing
Corporate functions targeted, customer-facing roles protected
According to NAB Group CEO Andrew Irvine, the bank is “particularly focused on reducing the size of corporate functions.” He added that “There will be no material impact to customer-facing banking roles.”
NAB has also made deeper changes to senior management positions, which Irvine said were “deliberately” made and will broaden leadership responsibilities across the bank.
The stated benefits include reduced duplication, faster decision making, and clearer roles, priorities and accountabilities for colleagues. Irvine said the changes are “expected to improve outcomes for customers by reducing duplication and speeding up decision making.”
Capacity for growth priorities
NAB said the actions create capacity for ongoing investment in its strategic ambition for customers. They support three stated priorities:
- Grow business banking
- Drive deposit growth
- Strengthen proprietary home lending
The bank pointed to a backdrop of more challenging economic conditions, increasing customer expectations, competitive intensity and rapid technological change. It said the actions will help make NAB a stronger bank, better placed to navigate risks and opportunities arising from these conditions.
The announcement does not quantify any savings or returns from the changes.
Understanding bank restructuring charges
A restructuring charge is a one-off accounting cost a company records when it reorganises its business. For a bank, this typically covers redundancy payments, moving staff into new roles and redesigning how teams are organised.
Companies generally book these costs upfront, in the period the restructuring is recognised. Investors watch the figure because it reduces earnings in that period, while any benefits from a leaner structure would typically appear in later earnings.
NAB has not disclosed expected savings from the changes. The NAB restructuring charge relates to redundancy, redeployment and organisational redesign costs, and compares with prior-year charges as follows:
NAB had earlier reaffirmed FY26 cash operating expense growth guidance of less than 4.6%, so the FY27 restructuring charge sits alongside a bank that has already been signalling cost discipline to the market.
| Financial year | Pre-tax restructuring charge | Note |
|---|---|---|
| FY25 | Approximately $80m | Incurred |
| FY26 | Approximately $80m | Incurred |
| FY27 | Approximately $300m | Expected |
Colleague support and what comes next
NAB will commence consultation with colleagues and the Finance Sector Union. Consistent with established organisational change processes, the bank will support departing colleagues with:
- Consultation and engagement opportunities
- Redeployment and reskilling opportunities
- Career transition support
- Redundancy entitlements in accordance with applicable industrial instruments and employment obligations
Irvine acknowledged the impact on staff. “We know this will be a difficult period for our colleagues impacted by these changes as well as the people around them. We will treat every person with dignity and respect.”
Further details on the cost outlook for FY27 will be provided with the release of FY26 results on 5 November 2026. That release is the next scheduled point at which NAB has said it will provide additional detail on costs.
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