NAB (National Australia Bank) is to cut 410 staff and restructure the jobs of 300 others as it moves 178 roles to India and Vietnam.
This is despite having posted a $1.7 billion (US$1.12 billion) profit in the June quarter, down just 0.7 percent despite fierce competition.
The bank is the nation’s biggest business lender with a 21 percent market share, but even smaller banks such as the Bank of Queensland and Bendigo Bank are pushing to grow their presence in that segment, which generally offers higher margins than the residential mortgage market.
Overall, NAB is Australia’s third-largest lender by market capitalisation.
An NAB spokesperson said having a global workforce would lead to better outcomes for customers through extending operating hours, speeding up processes, and improving turnaround times.
“We regularly look at the way we work and how we’re structured to deliver the best experience we can for our customers,” the spokesperson said.
“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.”
Staff were told on Sept. 9 and offered support, including career transition services and redeployment options.
New roles will be created in Australia, but there are currently no details.
The decision has been sharply criticised by the Finance Sector Union (FSU), whose 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. It is a betrayal of 728 workers and their families.
“Profits in their billions, jobs in the bin, banks are showing open contempt for their own people.
The union said it was “fiercely” fighting the job cuts and demanding accountability and secure local jobs from the bank.
“Workers face uncertainty about their futures while profitable banks replace workers in secure jobs with offshoring and automation,” the FSU said.
In August, NAB disclosed that errors in payments to staff will cost it another $130 million, after earlier paying them $155 million.
The bank did not disclose how many employees it had underpaid, or the cause. It is believed to relate to a range of staff benefits not being paid, including allowances for overtime, long-service leave, and penalty rates.
Also in August, Commonwealth Bank initially announced it was sacking 45 workers and replacing their jobs with AI, before quickly cancelling the idea.
