NAB cuts 2,500 jobs targeting management and contractors
National Australia Bank is cutting 6 percent of its workforce to reduce management layers, while protecting customer-facing roles.
Layoffs · Source: Reuters
What happened
National Australia Bank announced it will cut about 2,500 jobs over the full financial year. This represents roughly six percent of its total workforce. The bank expects 1,500 of these roles to be eliminated before the end of 2026.
Chief Executive Andrew Irvine stated the restructuring aims to speed up decision making and reduce duplication. The cuts will heavily target senior management positions. The bank is also reducing its reliance on external contractors and consultants.
Customer-facing positions will not see a material impact from these changes. The bank noted it continues to hire and develop staff for customer-facing roles in Australia. The move will cost the bank about $300 million in restructuring fees for the 2027 financial year.
In May, the bank reported a near-20 percent fall in its first-half statutory net profit. However, its preferred metric of cash net profit remained flat at $3.59 billion. The business and private banking arm still saw strong growth of 5.4 percent.
By the numbers
- 2,500 — Total number of jobs NAB expects to cut over the financial year
- 6% — Portion of the total NAB workforce affected by the cuts
- 1,500 — Number of jobs expected to be eliminated before the end of 2026
- $300 million — Expected restructuring costs for the 2027 financial year
- 3,500 — Number of staff rival bank ANZ previously announced it would cut
Why it matters
This signals a clear shift in how major banks structure their teams. Companies are actively thinning out middle and senior management layers to cut costs and speed up internal processes. If you are applying for corporate or strategic roles, expect fewer open headcounts and longer interview cycles as banks consolidate leadership duties.
A second-order effect is the shrinking market for external consultants and contractors. Banks are pulling back on outsourced advisory work to streamline operations. This is an industry-wide trend, as rival ANZ previously announced plans to slash 3,500 staff and 1,000 contractors by September 2026. Job seekers relying on contract roles to get a foot in the door at major financial institutions will face a much tighter market.
Who this hits
Senior managers and corporate staff
Leadership and middle management roles are the primary targets of this restructuring. The bank is broadening responsibilities for remaining leaders rather than keeping deep management layers.
Consultants and contractors
NAB is explicitly reducing its use of external contractors and consultants. Professionals working for agencies that service big banks will see fewer contract opportunities.
Customer service applicants
These job seekers are shielded from the cuts. The bank confirmed it is still hiring and developing staff for customer-facing positions.
What to do this week
- Pivot your job search toward frontline or revenue-generating roles, as banks are currently protecting customer-facing positions.
- Highlight your ability to execute tasks independently without relying on large teams or external agencies.
- If you are a contractor, start looking for direct full-time roles, as major institutions are cutting back on external vendor spend.
See who's hiring right now on GiraffyReach
My take
The banking sector is making a deliberate choice to flatten management and cut external consultants. I see this as a permanent correction rather than a temporary pause. If you want stability in this market, you need to be as close to the customer or the core product as possible.