National Australia Bank Tightens Belt: Jobs on the Chopping Block

By Peter Vincent for Daily Mail Australia

Banking Giant Faces Staff Cuts

In a bold move, the National Australia Bank (NAB) is rumored to be on the brink of shedding jobs, a whopping 10% of its workforce in one major division. Word has it that around 60 employees from the bank's 600-strong markets division might be shown the door as soon as this week, as reported by the Australian Financial Review.

Following in Big Footsteps

This decision places NAB in the company of other major players like Westpac and Commonwealth Bank, both of which have already made cuts to their teams. Even though NAB had recently announced an impressive quarterly profit – cash earnings up by 5.8% to $1.9 billion on August 15 – it seems that the cost-cutting bug has bitten.

NAB's Numbers Game

The bank's markets division, housed within the successful corporate and institutional banking (CIB) unit, is the focal point of these cutbacks. CIB raked in $940 million in cash earnings during the first half of 2023, a robust 16.6% increase from the previous year. Although not without controversy, these measures are part of a broader review aimed at trimming expenses that have surged by 11.6%.

A Few Drops in the Bucket

While the layoff news might raise eyebrows, the scale of this downsizing is relatively modest compared to the larger waves of job cuts that have been sweeping through Australia's banking landscape this year. Westpac took some heat when it let go of over 750 staff and contractors in a mere seven weeks. Commonwealth Bank followed suit, axing 100 jobs from its retail and technology sectors.

CEO Talks "Productivity Savings"

NAB's CEO, Ross McEwan, highlighted the importance of "productivity savings" in the face of inflationary challenges. He pointed out that their strategy aims to carve out approximately $400 million in savings during the current fiscal year. McEwan's focus remains steadfast on sustainable growth, improved returns for shareholders, and creating better outcomes for both customers and colleagues.

A Look Ahead

NAB is part of Australia's top-tier banking quartet and holds assets valued at $945.32 billion, as reported by the Australian Prudential Regulation Authority (APRA). It stands as the fourth-largest employer among the banks, trailing behind Commonwealth, ANZ, and Westpac, boasting a workforce of about 37,346 full-time employees.

Daily Mail Australia reached out to NAB for commentary, while the Finance Sector Union opted to remain silent.