NAB plans to cut up to 2,500 roles as wider job losses raise economic concerns

National Australia Bank (NAB) announced on 20 October 2026 that it expects to reduce its internal workforce by up to 2,500 roles in FY27, about 6% of its workforce. ABC News reported the announcement as part of a wider pattern of cuts by large employers in Australia, raising concern that further job losses could worsen economic weakness.

In its announcement, NAB said up to 1,500 roles would be reduced before the end of 2026. The bank said it was simplifying its operating model after reviewing the workforce it needs for its growth and technology priorities.

Which NAB roles are affected

NAB said it would consult affected colleagues and the Finance Sector Union. It said employees would have access to consultation, redeployment and reskilling opportunities, career transition support and applicable redundancy entitlements.

The bank expects a pre-tax restructuring charge of about $300 million in FY27 to cover redundancy, redeployment and organisational redesign costs. It said it would give further detail on its FY27 cost outlook when it reports FY26 results on 5 November 2026.

Why wider job cuts matter for Australia’s economy

ABC News noted that ANZ had flagged a reduction in duplication and internal complexity in a restructure late in 2025. It also reported that BHP confirmed cuts at its Western Australian iron ore operations the week before NAB’s announcement. These are separate decisions by different employers; ABC’s argument is that job losses could become more damaging if cuts spread further.

The economic backdrop includes weak productivity and softer housing lending. ABC cited Australian Bureau of Statistics figures showing GDP per hour worked fell 0.2% over the 12 months to June. It also cited a 5.4% fall in new dwelling loan commitments in the June quarter, including an 8.6% fall in new investor commitments.

ABC reported that the Reserve Bank had raised interest rates four times in 2026. It attributed to Commonwealth Bank chief economist Luke Yeaman the view that inflationary pressures could require further increases. Higher borrowing costs and wider job losses are risks in ABC’s analysis; whether other large employers make similar cuts remains unclear.