National Australia Bank (NAB) announced on Tuesday it will cut 2,500 jobs, or 6% of its workforce, to adapt to an evolving operating environment. The majority of roles will be shed by year-end, alongside reduced spending on consultants and contractors. This marks the largest of three job-reduction rounds at NAB since September last year.
ANZ, led by former HSBC executive Nuno Matos, has cut 3,500 roles, including senior positions, to simplify operations. Commonwealth Bank of Australia has shed 1,000 jobs in the past year, with 500 staff redeployed. The sector faces slowing growth after mortgage applications dropped due to property tax changes and four interest rate rises this year.
Prime Minister Anthony Albanese’s government has unwound tax incentives that fueled a 400% rise in home prices since 1999. Analysts warn of Australia’s worst property market correction in 40 years due to tax reform, higher rates, and inflation. Fintech rivals like Revolut and Macquarie’s digital bank are increasing pressure on the 'big four'.
NAB CEO Andrew Irvine said cuts target corporate functions and duplication, with no material impact on customer-facing roles. He emphasized treating affected colleagues with dignity and respect. The Finance Sector Union called the move a 'wrecking ball' and 'disgraceful' given its timing near Christmas.
NAB shares fell 3.4% after the announcement and are down over 9% year-to-date.
Source: Financial Times Companies · Summarized by HeadlinesBriefing