National Australia Bank (NAB), one of the country’s largest financial institutions, announced plans to cut approximately 2,500 jobs, representing around 6 percent of its workforce. The majority of these reductions are expected to take place by the end of the year as the bank adapts to what it described as an “evolving operating environment.”

The job cuts are part of NAB’s broader efforts to reduce corporate functions and eliminate duplication across its operations. Andrew Irvine, NAB’s chief executive, emphasized that the restructuring would not significantly affect customer-facing roles. Irvine, who took over from Ross McEwan in 2024, acknowledged the difficulties the changes would pose for affected employees and pledged to handle the process with dignity and respect.

This round of layoffs is the largest in a series of reductions at NAB since September last year. The move adds to broader staffing pressures in Australia’s banking sector, which has also seen notable cuts at other major lenders. ANZ, led by former HSBC executive Nuno Matos, has reduced its workforce by around 3,500 roles as part of an effort to simplify operations and improve performance. The Commonwealth Bank of Australia has also cut 1,000 jobs in the past year, while redeploying about 500 staff to other roles.

The banking sector’s downturn comes amid a slowdown in the property market following a drop in mortgage applications. This decline followed government policy changes, including the rollback of certain property tax incentives designed to cool rapidly rising home prices, which had surged approximately 400 percent since 1999. Prime Minister Anthony Albanese’s administration has cited the need to address Australia’s housing affordability crisis as a key motivation for these reforms.

Analysts have warned that the country may be facing its most significant property market correction in four decades, driven by a combination of tax changes, four interest rate hikes this year, and persistent inflation. Additionally, the growth of fintech competitors such as Macquarie’s digital bank and Revolut has intensified competition, putting pressure on the nation’s established “big four” banks.

The Finance Sector Union criticized NAB’s announcement, describing the job cuts as a “wrecking ball” to one of Australia’s largest workforces and called the timing, so close to Christmas, “disgraceful.”

Following the announcement, NAB’s shares declined 1.8 percent, contributing to a drop of more than 7 percent in the bank’s stock price year to date.