More than 1,000 employees at one of Australia’s largest banks are facing redundancy just days before Christmas, as concerns grow over the effect of artificial intelligence and offshore operations on jobs.
National Australia Bank is expected to cut up to 1,500 positions before the end of the year, followed by as many as 1,000 further roles by the close of its 2027 financial year.
The planned reductions amount to roughly 6 per cent of NAB’s workforce, with corporate departments expected to absorb most of the cuts.
NAB employees who spoke to the ABC anonymously said they had anticipated redundancies as the bank expanded its use of AI and shifted more work offshore.
James*, who resigned only days before NAB revealed the job cuts, said he had stopped feeling secure in his role after staff were told the bank would expand its teams in India, with a focus on digitising and simplifying processes, increasing automation and speeding up turnaround times.
He has since left banking for a position in the service sector.
‘People are feeling the anxiety,’ he said. ‘I can’t be replaced realistically for the next five to 10 years.’
Another employee, Dylan*, said he discovered that his role could be affected by this year’s restructuring after spending a decade working in NAB’s technology team.
NAB is expected to eliminate up to 1,500 positions before the end of the year, with as many as 1,000 more to be cut by the end of its 2027 financial year
‘We know this will be a difficult period for our colleagues impacted by these changes as well as the people around them,’ NAB Group chief executive Andrew Irvine (pictured) said
Dylan’s team will be required to reapply for their positions during a two-week consultation process, meaning existing employees will compete for fewer available jobs.
Employees who do not secure a position are expected to finish work by December 17 at the latest.
‘Until today, it’s been a lovely place to work,’ Dylan said.
Technology, including AI, is expected to continue reshaping the way work is carried out across NAB. However, the changes are not understood to represent the widespread replacement of employees by artificial intelligence.
The ABC reported that a leaked workforce plan showed Dylan’s technology division, which had just under 500 employees, would be reduced to 400 positions by the end of the 2027 financial year.
The plan reportedly indicated that the Australian-based proportion of the team would fall from 53 per cent to 40 per cent.
Meanwhile, the proportion of roles located in India was reportedly set to rise from 14 per cent to 30 per cent.
The share of positions based in Vietnam was also reportedly expected to increase, from 13 per cent to 20 per cent.
Most of the planned NAB redundancies are expected to affect corporate functions
The Finance Sector Union, which represents bank employees, said it was appalled by NAB’s decision to make staff redundant so close to Christmas.
FSU national assistant secretary Nicole McPherson described the move as a ‘wrecking ball’.
‘It will wreak chaos and entrench a culture of anxiety at a bank that seems hell-bent on self-destruction,’ she said.
‘To take a wrecking ball to 6 per cent of one of Australia’s largest workforces this close to Christmas is disgraceful and shows that NAB’s leadership is completely detached from the lived experience of their workers.’
It comes after NAB chief executive Andrew Irvine told staff to be ‘thoughtful’ and check in on one another, while indicating support would be offered to those ‘impacted personally’.
The banking giant lodged the announcement to the ASX on Tuesday morning after carrying out what was described as a ‘broader review’ of its workforce.
NAB said the changes would leave it better able to address ‘risks and opportunities’ from ‘more challenging economic conditions, increasing customer expectations, competitive intensity and rapid technological change’.
‘We are particularly focused on reducing the size of corporate functions. There will be no material impact to customer-facing banking roles,’ Mr Irvine said.
FSU national assistant secretary Nicole McPherson described the move as a ‘wrecking ball’
‘We have also deliberately made deeper changes to senior management positions, which will broaden leadership responsibilities across the bank.
‘This will simplify work between teams and improve cross-functional processes with clearer roles, priorities and accountabilities for our colleagues.’
The ASX statement said NAB expected to record a restructuring charge of approximately $300million pre-tax in the 2026-27 financial year.
The cost related to redundancies, redeployment and organisational redesign.
NAB is not the only member of Australia’s ‘Big Four’ banks to have cut jobs.
In February, Commonwealth Bank laid off about 300 workers in Australia and increased its workforce in India just weeks after recording a $5billion profit.
Commonwealth Bank had increased its India-based workforce by 21 per cent to 6,788 in the year to June 2025, a 138 per cent increase since 2022.
ANZ also confirmed in September 2025 that it would cut 3,500 jobs over 12 months.
*The names of the workers have been changed to protect their identities.
READ MORE: ANZ Bank to cut THOUSANDS of jobs in Australia