National Australia Bank slashes jobs: Ten per cent of markets division to be made redundant – after Westpac and Commonwealth Bank made cutbacks
National Australia Bank cuts jobs: Ten percent of market share becomes redundant – after Westpac and Commonwealth Bank cut spending
- The bank will lay off sixty employees in key positions
- It also made huge quarterly profits
The National Australia Bank is reportedly preparing to cut staff and cut 10 per cent of its workforce in one division.
Sources claimed the bank will lay off 60 employees from its 600-person markets division as early as this week. Australian financial statement reported.
NAB has become the latest bank to announce cuts, following Westpac and the Commonwealth Bank.
The decision was made despite the bank posting a huge quarterly profit, with NAB announcing that cash earnings were up 5.8 percent to $1.9 billion as of Aug. 15. Statutory net profit was $1.75 billion.
News of the layoffs, which have yet to be confirmed by the bank, comes amid a nationwide cost-of-living crisis after NAB posted huge quarterly profits
National Australia Bank will continue major banks’ recent trend of major staff cuts that will see 60 market division members cut
The bank’s market division is part of the successful Corporate and Institutional Banking (CIB) division.
The CIB division achieved cash earnings of $940 million in the first half of 2023, an increase of 16.6 percent over the same period in 2022.
That made it the bank’s second-biggest earner for the first six months of 2023, behind its business and private banking division which posted $1.7 billion in half-year profits.
The NAB job cuts are said to be part of a company-wide headcount review expected to affect seven business divisions after total costs rose 11.6 percent.
NAB has yet to formally announce the internal changes.
The layoffs are drastically smaller than the hundreds collectively laid off by other banks in Australia this year.
In July, Westpac was heavily criticized for being ‘insensitive’ by the Finance Sector Union after laying off more than 750 staff and contractors in just seven weeks.
Commonwealth Bank followed soon after, cutting 100 jobs at its retail banking and technology units.
In announcing quarterly earnings, NAB CEO Ross McEwan emphasized “productivity savings.”
Our strategy also delivers productivity, which is essential to help us manage inflationary impacts while continuing to invest in our key priorities. We continue to target productivity savings of approximately $400 million in FY23.”
“We will continue to execute our long-term strategy with discipline and improve outcomes for clients and colleagues to deliver sustainable growth and better shareholder returns.”
In announcing quarterly earnings, NAB CEO Ross McEwan (pictured) emphasized “productivity savings.”
NAB is the third largest of Australia’s four major banks as measured by the value of Australian assets it held at the end of June 2023.
According to the Australian Prudential Regulation Authority (APRA), the company owns $945.32 billion.
NAB is the fourth largest banking employer, after Commonwealth, ANZ and Westpac, with an estimated 37,346 full-time employees.
Daily Mail Australia approached NAB for comment. The Financial Sector Union declined to comment.