Commentary
Thousands of banking workers face an uncertain future as National Australia Bank (NAB) follows ANZ with major redundancies.
It raises concerns about the impact of corporate restructuring and artificial intelligence on the workers with specialised banking, technology, and corporate management experience—which could lead to more pressure on the job market.
On Oct. 20, NAB revealed plans to eliminate up to 2,500 jobs, approximately 6 percent of its workforce.
NAB Group Chief Executive Andrew Irvine said the restructuring would reduce duplication, simplify operations and improve productivity.
“Our ambition and strategy remain unchanged. We will improve productivity, risk outcomes and execution to be a simpler and more efficient bank,” Irvine said.
Up to 1,500 positions will disappear before the end of 2026, with the remaining reductions expected by mid-2027.
Corporate functions and senior management will bear the greatest impact, while customer-facing positions are expected to remain largely unaffected.
NAB anticipates approximately $300 million (US$210 million) in pre-tax restructuring costs.
The Finance Sector Union has condemned the announcement, warning about the financial security of affected employees, particularly those facing redundancy before Christmas.
ANZ’s Decision to Cut 3,500 Jobs
NAB’s decision follows a major restructuring at rival ANZ, which announced in September 2025 that approximately 3,500 employees would depart by September 2026.
Under CEO Nuno Matos, ANZ also moved to reduce approximately 1,000 contractors as part of its $560 million restructuring programme.
Around 60 percent of the affected employee roles were identified within the Group Technology and Australian Retail divisions, with other reductions targeting middle-office functions.
ANZ said the changes would eliminate duplicated responsibilities, simplify management, and strengthen operational efficiency.
The combined reductions at NAB and ANZ could create additional challenges for displaced workers, particularly those with specialised banking, technology and corporate management experience.
HSBC’s Withdrawal
The restructuring comes as HSBC prepares its exit from Australian retail banking following its July agreement to sell its $36 billion home and personal loan portfolio to U.S. investment giant Blackstone.
Unlike NAB and ANZ, HSBC is withdrawing from a business segment rather than primarily reducing staffing.
The expansion of non-bank lenders could further reshape the landscape.
Less Jobs to Go Around?
The cumulative impact of banking redundancies could extend beyond the financial sector.
Thousands of displaced professionals competing for fewer comparable positions may face longer unemployment periods, reduced salary expectations, or pressure to retrain.
Further corporate restructuring could also weaken overall household spending and consumer confidence, particularly amid elevated living costs and economic uncertainty.
Although the announced reductions remain relatively small compared with Australia’s total workforce, their concentration in particular occupations will likely create more pressure.
The key issue will be whether Australia’s economy can create enough new job opportunities to accommodate the sudden influx of employees.
Artificial Intelligence Playing a Part Too
Meanwhile, this is occurring as artificial intelligence playing a bigger role in automating administrative, analytical, and customer-support functions.
While NAB has not identified AI as the direct cause of its redundancies, the bank cited rapid technological change among the pressures driving its restructuring.
The Finance Sector Union has sought clarification about AI’s role in the decision.
Greater automation could improve productivity while reducing demand for certain traditional positions, potentially making it harder for displaced workers to find comparable employment.
At the same time, investment in AI may generate demand for specialised technology, cybersecurity and data-related skills.
However, workers losing administrative or management positions may not possess the qualifications required for these emerging opportunities.
Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.
