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NAB plans to remove up to 2,500 internal roles

National Australia Bank plans to reduce its internal workforce by up to 2,500 roles during the next financial year, including up to 1,500 before December ends. Corporate functions and senior management face a larger share of the reductions. The bank expects around 300 million Australian dollars in pre-tax restructuring charges.

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Reductions target corporate and senior roles

National Australia Bank, the Australian banking group known as NAB, plans to reduce its internal workforce by up to 2,500 roles in the next financial year. That represents approximately 6 per cent of employees. Up to 1,500 of the reductions are intended to occur before the end of December.[1], [2]

Chief executive Andrew Irvine said corporate functions and senior management would bear a larger share of the reductions. The bank does not anticipate a material impact on customer-facing banking roles. It also plans a substantial reduction in consultants and contractors, separately from the internal headcount target.[1]

Restructuring charge expected to reach A$300 million

NAB expects pre-tax restructuring charges of approximately 300 million Australian dollars in the next financial year. That compares with around 80 million Australian dollars in each of the preceding two years. The new amount is management’s estimate for implementing the changes.[1]

Staff support and strategic priorities

The bank will consult the Finance Sector Union. Planned support includes redeployment where possible, reskilling, career-transition assistance and redundancy arrangements. Business banking, deposit gathering, home lending through the bank’s own channels and technology investment remain strategic priorities. Further cost-outlook details are scheduled with annual results on November 5.[1]

References

  1. News sourceNational Australia BankNAB plans to cut up to 2,500 internal roles↩1↩2↩3↩4
  2. News sourceForbes AustraliaNAB plans to remove up to 2,500 internal roles↩
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