The strategy will see 6,000 people leaving the bank over three years, with 2,000 new roles being created.
Meanwhile, the bank is set to hire specialists in data, AI, robotics, automation, software engineering, data, architecture and security.
NAB's chief people officer Lorraine Murphy acknowledged it was a difficult time for those affected.
“We will acknowledge the contribution that people who are leaving us have made. We will show through our actions that we care," she said in a statement.
Staff who are made redundant or elect to leave the bank have access to a program called The Bridge to help them with the transition into another role.
"There is no doubt that this is the right plan for our business. I encourage you to ensure that all of our people understand the changes and are supported, and that those who remain with us can deliver the type of bank we have promised our customers – a simpler, faster bank," Murphy said.
NAB has 33,422 full-time employees as of November, down from 34,263 the previous year.
Murphy also recently said the banking industry is undergoing significant change, and NAB is shifting with it in order to attract talented people and offer a great workplace.
“We’ve listened to our current and past-graduates, and we know we need to be even more creative about how we entice talent, and support their development as they enter a changing workforce,” said Murphy.
NAB chief technology officer Patrick Wright referred to the intense competition in the technology skills market as part of a "war for talent" as it competes with local financial technology companies and global tech giants for the right staff.
