The National Australia Bank has announced the loss of 6,000 jobs over the next three years due to an increasing number of transactions moving towards digital channels.
However, the net job loss would be closer to 4,000 as 2,000 new digitally focused positions will be created. The 6,000 workers represent 18% of the bank’s 33,400 workforce.
NAB will also establish a redundancy program for employees leaving the bank where workers can access support and resources for a period of up to six months after leaving the bank.
The bank is expected to announce restructuring costs relating to the redundancies of between $500m and $800m in first half results early next year.
NAB aims to move 60% of its business online over three years and will invest an extra $1.5bn focused on the technology transformation and simplifying internal processes.
At the same time, the major bank announced that has lifted its full-year profit by 2.5% to $6.642bn.
NAB CEO Andrew Thorburn said that what NAB is doing is “simplifying the bank”.
“And as we simplify, we automate processes and things move to digital channels, we will need less people and as that happens we estimate that there will be 6,000 less people needed in three years’ time,” he said.
“Having said that, we’re hiring 2,000 people with different capabilities: data scientists, AI, robotics, automation, technology people, digital people, so the net will be 4,000 and that’s just a reshaping that’s going to happen.
“We’re very happy to do retraining for people who have got the aptitude and commitment to do some retraining, but there will be some where they’re coming out of more traditional areas, but what we’re not doing is saying now that the 6,000 will come from here or here or here.”
The cost-cutting measures are budgeted to deliver annual savings of $1bn by 2020.
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