National Australia Bank plans to cut 2,500 jobs as troubles in Australia's mortgage market hit the banking sector.

National Australia Bank will cut up to 2,500 jobs as it pushes ahead with a business overhaul to address intensifying industry competition, economic weakness weighing on its home lending business, and rapid technological change. The Melbourne-based bank said in a statement on Tuesday that the cuts will mainly target management and back-office functions; it will book A$300 million in pre-tax restructuring costs in fiscal 2027. The bank will also reduce its use of external contractors and consultants, saying this will streamline decision-making and eliminate duplicated work. The job cuts will affect 6% of its approximately 42,000 employees. The reductions are the latest in a series of large-scale workforce cutbacks across Australia's banking sector over the past year, reflecting a continued deterioration in the industry's operating environment and a deep property downturn that has shrunk new mortgage origination.