In a bold manoeuvre aimed at streamlining operations and bolstering efficiency, Yes Bank, one of India’s prominent private sector banks, has initiated a significant workforce restructuring. This strategic move has resulted in the layoff of 500 employees, with further reductions anticipated in the coming weeks.
The recent wave of layoffs has spanned multiple verticals, from wholesale and retail to branch banking, with the latter bearing the brunt of the impact. Those affected by the downsizing have been granted severance packages equivalent to three months’ salary, as disclosed by individuals familiar with the matter.
Yes Bank’s internal restructuring is driven by the insights of a multinational consultancy, signalling a commitment to transforming into a more agile and future-ready organisation. A spokesperson for the bank elucidated, that in their endeavour to be an agile, future-ready organisation which is leaner, faster, customer-centric, and operationally efficient, they periodically undertake a thorough review of the way they operate and optimise their workforce.
Ink Dive: Google Cuts Over 100 Jobs in Rapidly Expanding Cloud Division: CNBC
Central to this restructuring is the bank’s strategic pivot towards digital banking, aimed at reducing reliance on manual processes and curtailing operational costs. This digital shift is expected to not only streamline operations but also enhance customer service and stakeholder value.
The bank’s operating expenses witnessed a notable increase of nearly 17% in the previous financial year. Staff expenses alone saw a surge of over 12%, rising from ₹3,363 crore at the end of FY23 to ₹3,774 crore by the close of FY24. Despite these expenditures, the bank expanded its workforce by 484 employees, reaching a total of approximately 28,000, with over 23,000 employees in junior management roles.
This is not Yes Bank has maiden restructuring. Following a Reserve Bank of India-led rescue in 2020, the bank, under the stewardship of Managing Director Prashant Kumar, it witnessed a significant exodus of senior staff. This latest round of layoffs marks the first significant workforce reduction by a private sector bank in recent years, contrasting with the hiring trends observed in other private banks.
The restructuring gains further importance as Yes Bank, with the State Bank of India as its largest shareholder, continues to grapple with improving its operating profits. At the end of FY24, the bank’s operating profit experienced a modest growth of 6.4%, reaching ₹3,386 crore, up from ₹3,183 crore the previous year.
Yes Bank’s ongoing efforts to realign its workforce and embrace digital banking underscore its resolve to navigate the complex financial landscape. By optimising its operations, the bank aims to enhance its service delivery and fulfil its potential for customers and stakeholders alike.
Insights from agency
