‘Our workforce is always changing’: NAB CEO Andrew Irvine signals 2,500 job cuts by June 2027

National Australia Bank (NAB) will cut 2,500 jobs, or around 6% of its workforce, by June 2027 as part of a major restructuring targeting back-office and corporate roles.

According to media reports, the announcement comes weeks after NAB chief executive Andrew Irvine spoke about the changing nature of work and the growing role of artificial intelligence (AI) at the NAB Business Summit in Melbourne on 24 August. 

While Irvine has rejected suggestions that AI is the primary driver of the job cuts, his earlier remarks have drawn attention to how technology could influence workforce requirements across the banking sector.

“Be under no illusion, AI is the fourth industrial revolution, and it will be as consequential to how we live and work as the steam engine, electricity and the computer was to humanity,” Irvine told the summit.

NAB to cut 2,500 jobs by June 2027

The bank plans to eliminate 1,500 positions by the end of 2026, followed by another 1,000 in early 2027. 

The cuts will affect back-office functions across the organisation, including strategy, transformation and project management.

NAB will also reduce its reliance on consultants and contractors as it seeks to lower costs, remove duplication and simplify its operating structure. The bank has said customer-facing banking roles will not be materially affected.

“Our ambition and strategy remain unchanged. We will improve productivity, risk outcomes and execution to be a simpler and more efficient bank,” Irvine said.

“These changes are expected to improve outcomes for customers by reducing duplication and speeding up decision making.”

The bank has begun a 10-business-day consultation period with employees and the Financial Services Union. The new organisational structure is expected to be finalised after the consultation concludes.

Irvine had flagged changing workforce requirements

At the August summit, Irvine pointed to how banking operations had changed over the years, highlighting the decline of traditional administrative roles and the growing importance of technology.

“At the same conference, he noted that NAB decades ago “employed thousands of bank tellers, thousands of administrative clerks and we had large typing pools”,” according to media reports.

“The point is, our workforce is always changing. What is important is that we help Australians run to AI not from it, learn how to use it to be better at their work and teach them the skills they need to be future fit,” he said.

Although the bank has positioned the restructuring as an effort to improve productivity and streamline decision-making, analysts have identified AI as a potential factor behind the growing focus on reducing administrative costs across major financial institutions.

Swinburne University of Technology governance expert Helen Bird has called on NAB to clarify whether AI would replace employees in administrative, monitoring and oversight functions. 

She also urged the bank to explain the governance protocols surrounding the technology and the role of human oversight.

Restructuring amid mounting cost pressures

NAB's workforce reduction comes as Australian banks face pressure from weaker lending activity, higher interest rates and rising operating costs. 

The restructuring is expected to bring the bank's full-time-equivalent workforce to around 40,000.

According to media reports, the changes will result in a $300 million charge against NAB's profit next year. 

The bank is scheduled to announce its full-year results on 5 November.

The job cuts have also drawn criticism from the Finance Sector Union, which warned that reducing headcount could intensify workloads for remaining employees.

NAB has maintained that the restructuring is intended to simplify operations, broaden management responsibilities and improve accountability across teams. 

However, the extent to which AI will contribute to the planned workforce reduction remains unclear as the bank moves ahead with its organisational changes.