NAB invests $1.8b to rebuild, flags more job cuts
The bank housing the second largest number of financial planners in Australia, the National Australia Bank (NAB), has announced it will invest $1.8 billion in rebuilding its Australian business, as it lets go of another 1,000 staff over the next two years.
The bank’s wealth management arm MLC will get some of the cash, with NAB chief executive Ahmed Fahour announcing the bank intends to improve the division’s service levels and “revitalise its ‘manager of managers’ platform”.
And Fahour also announced that 1,000 job cuts across all divisions of the bank announced in May had been completed.
But he added that the bank was still only half way through a three-year turnaround, which began 18 months ago amid the fallout from several years of poor performance and the foreign exchange desk rogue trading scandal.
“We have broadly stabilised the business and are now embarking on the rebuilding phase,” he said.
He said another 1,000 jobs would go in the next two years.
Earlier this month NAB competed the final stage of its executive staff restructure, by reducing its group executive committee from 15 to eight members.
Further redundancies are expected in the group’s head office, with the company signalling that the current number of 800 to 900 personnel is likely to be reduced to “several hundred” at the end of the full year.
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