National Australia Bank to slash 6000 jobs over three years

NATIONAL Australia Bank’s chief says it’s a “fair assumption” an oversized number of the 6000 jobs slashed from the bank will come its Melbourne headquarters.

National Australia Bank chief executive Andrew Thorburn. AFP Photo / Peter Parks

NATIONAL Australia Bank’s chief Andrew Thorburn says it’s a “fair assumption” an oversized number of the 6000 jobs slashed from the bank will come its Melbourne headquarters.

His comments came after Victorian Treasurer Tim Pallas raised the spectre of the local workforce being hardest hit by the automation driven job cuts.

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There are about 12,000 people spread across three main offices in the Melbourne CBD, and Mr Thorburn would not give a figure on how many of these would lose their jobs.

“It is hard to say at the moment because what we are doing is working through it, as we simplify the bank we are going to need less people,” he told the Herald Sun.

“I think it is a fair assumption, given the number of people we employ in Melbourne that it would be disproportionate. But we haven’t done those numbers yet.

“Once we do the work we will be open with you about it.”

The nationwide job losses are set to take place over the next three years, NAB revealed.

It is understood most cuts will come from middle management, as the lender moves to tackle the realities of banking in the online world.

The revelations come as the bank increased its cash profit up 2.5 per cent to $6.6b.

It will pay $5.3b in dividends to shareholders.

Mr Pallas said the job losses were disappointing.

“Nonetheless we will continue to work with NAB to try and minimise the impact on families and community more generally,” he said.

And Mr Thorburn also said he had to accept whatever political impact the cuts had, as Labor and the Greens calls for a Royal Commission in Canberra gain momentum.

“I think with the reaction and any noise in the market, we have to accept that it is going to be the case when you lay out a plan that has a couple of edges to it,” he said.

It is understood the bulk of 2000 new jobs to be created by 2020 — including data scientists, cyber professionals, technology architects — are supposed to be based in Melbourne. The 6000 workers make up about 18 per cent of its 33,400 current full time staff.

The bank is also to be opening 10 new branches across the growth corridors of western Melbourne and Sydney.