National Australia Bank (NAB) has announced plans to reduce its workforce by more than 400 positions, following a similar announcement from ANZ just days earlier. The cuts will primarily take place in NAB’s technology and enterprise operations division, as the bank seeks to streamline its organizational structure. A spokesperson for NAB noted that the decision aligns with the bank’s commitment to adapt its operations to better serve customer needs.
In a parallel move, ANZ revealed its intention to eliminate around 3,500 positions over the next year as part of a broader restructuring strategy. The bank stated that while certain roles would be phased out or relocated, new positions would be created in various locations to ensure enhanced operational efficiency.
The Finance Sector Union (FSU) has criticized both banks for their decision to cut local jobs while simultaneously hiring for over 120 positions in countries like India and Vietnam. The union highlighted that the job reductions would adversely affect more than 700 employees, with NAB’s cuts comprising 410 permanent positions.
The NAB spokesperson defended the decision, indicating that the introduction of a global workforce would enhance customer service by extending operational hours and improving process efficiencies. Nonetheless, the FSU has expressed concern over the growing uncertainties faced by workers in the industry, particularly as banks increasingly turn to offshoring and automation.
This round of layoffs comes in the wake of heightened scrutiny faced by major banks regarding their employment practices. Following ANZ’s announcement, which was felt acutely by employees who received notifications via automated messages, the FSU’s national president labeled the widespread job cuts as “shameful.” She emphasized that this was not an isolated incident but rather a troubling trend within the sector aimed at prioritizing profits over job security.
In recent months, NAB has faced its own financial challenges, particularly regarding payroll issues that resulted in a projected operating cost increase of $130 million for the financial year 2025. The bank has been engaged in a payroll review initiated in 2019, which identified significant issues that had previously cost it $250 million over a two-year span.
Despite these challenges, NAB’s share price saw a slight increase of 1.6%, reaching $43.47 per share following the job cut announcement. As the banking sector continues to evolve, the FSU has vowed to advocate fiercely against the job cuts, prioritizing the preservation of secure, local employment.
