NAB has joined a big four banking rival by shedding jobs in response to mounting share price pressure and artificial intelligence advances.
The bank was accused of betraying its workers and their families by a union after announcing the loss of 410 jobs, while more than 300 others from its technology and enterprise operations are affected by changes to their employment.
A total of 127 roles will be created in India and Vietnam.
NAB said having a global workforce would lead to better outcomes for customers through extended operating hours, speeding up processes and improving turnaround times.
“The environment we operate in is constantly changing and we need to have the right structures alongside the right skills and capabilities in the right locations to help us deliver for our customers,” a spokesperson said.
ANZ on Tuesday announced 3500 staff and 1000 contractors would be laid off by September 2026 in a major restructure.
The bank said it was part of a push to simplify operations, focus on the “priorities of customers” and cut consultant spending, with limited impact on frontline-facing roles.
The 410 jobs lost at NAB represent about one per cent of its workforce, while ANZ shed about eight per cent of its staff without including the 1000 contracting jobs lost.
University of Sydney management professor Angela Knox pointed to tough competition for investors, pressure to increase share prices and the rollout of artificial intelligence.
She said it was “no coincidence” labour costs were lower in Vietnam and India.
“They’re trying to reduce costs to improve performance outcomes, particularly for their investors,” Professor Knox told AAP.
NAB’s share price rose by 1.6 per cent on Wednesday.
Finance Sector Union national president Wendy Streets accused NAB of betraying hundreds of workers and their families.
“Cuts this deep don’t just hurt staff, they hollow out services for customers and communities who rely on NAB,” she said.
“Two banks in two days slashing jobs, it’s shameful.
“This isn’t one rogue bank, it’s the whole sector driving the same agenda at the expense of workers and communities.”
Macquarie University Business School Professor Elizabeth Sheedy wasn’t surprised by the cuts as the industry regularly had restructures, which she said was considered a reason why Australian banks were among the most profitable in the world.
She said while two banks announcing cuts at the same time could provide cover or share scrutiny, it may also be because many banks recently completed technology upgrades.
“They’re not really saying too much about AI in in terms of their strategy, but I think everyone suspects that that’s an underlying issue,” Prof Sheedy said.
Both institutions have fairy new chief executives, with ANZ boss Nuno Matos appointed in May, while NAB boss Andrew Irvine stepped into the role in April 2024.
“Three of the big four banks have new CEOs. It’s kind of the fairly typical playbook that a new CEO wants to make their mark and make a lot of changes to get the organisation operating in a way that matches their vision,” she said.
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