Australian lenders are slashing headcount as falling benchmark interest rates put pressure on margins
[SYDNEY] National Australia Bank (NAB), the nation’s second-largest lender by market value, is cutting 410 jobs within its technology and enterprise operations division, according to the Finance Sector Union (FSU).
A total of 728 workers at the Melbourne-based bank are “impacted” by the changes, according to an FSU statement on Wednesday (Sep 10). NAB also intends to add 127 new roles in India and Vietnam, shifting some work that was previously done in Australia.
“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 NAB spokesperson said. “While some roles are no longer required or may move location, we are also creating new roles across all locations as necessary, to ensure we are set up for success and can deliver better outcomes.”
Australian lenders are slashing headcount as falling benchmark interest rates put pressure on margins. Earlier this week, rival ANZ Group Holdings said that it planned to cut around 3,500 roles by September next year as part of a wider overhaul. Last month, Commonwealth Bank of Australia reversed a decision to cut 45 customer service roles due to artificial technology after pressure from the FSU.
NAB employs more than 38,000 people globally, according to its 2024 annual report. About 91 per cent of the workforce are in Australia and New Zealand, with others in Asia, London, New York and Paris. NAB India and NAB Vietnam have continued to grow to more than 4,200 people, the report said.
The bank has also been reviewing how it pays staff following the latest payment errors that will cost it around A$130 million (S$110 million). Chief executive officer Andrew Irvine last month said that the problem was disappointing and must be fixed. The bank has for years battled with problems of underpaying employees. BLOOMBERG
