The National Australia Bank (NAB) has started cutting 1000 jobs as part of A$1bn cost-cutting plan announced last year.

The latest cut, which is part of 6000 redundancies to be made over the next three years, will enable the bank to slash expenses and invest in new technology.

However, the Australian bank also revealed plans to hire around 2,000 new people with digital technology skills.

NAB chief people officer Lorraine Murphy said that the next phase in transforming our business is underway, as part of a three year process.

Murphy noted that the proposed structure will reduce the layers and complexity in the bank so that the bank can become simpler, take fast decisions and meet its customers’ expectations.

“We said we would provide the utmost care and respect for all of our people. This remains our priority,” Murphy added.

“We will acknowledge the contribution that people who are leaving us have made. We will show through our actions that we care. For people who do ultimately leave us through redundancy, they will have access to world-class support to help them prepare for future success via The Bridge programme.”