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Treasurer questions job losses at NAB

Treasurer questions job losses at NAB

(11 May 2005 – Australia) Federal Treasurer Peter Costello has challenged National Australia Bank to justify its decision to cut 2000 mainly back office jobs over the next two years. Fresh from delivering the post election budget on Tuesday, Costello told ABC Radio the bank was a highly profitable organisation and he hoped the bank had a good explanation for the redundancies.

The bank announced it would make approximately 2000 non customer facing staff redundant over the next two years.

NAB said it had booked a provision of A$282 million after tax in its first half results covering 2700 redundancies, comprising 1000 in Australia and 1700 in its UK business.

The bank said the first half provision was expected save an annualised A$375 million when completed.

The second half included a provision of up to A$400 million relating to another 1500 redundancies, property rationalisation and other restructuring costs.

Of the 1000 jobs to go in Australia, 400 will come from NAB’s Institutional Markets and Services business and 100 from areas such as the bank’s corporate centre.

NAB said a total of 4200 jobs will be made redundant over the next two years from the bank’s global business.
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