Private lender Yes Bank has reportedly laid off hundreds of employees as part of a restructuring exercise aimed at enhancing operational efficiency. The layoffs affected multiple segments, including wholesale, retail, and branch banking.
Details of the Layoffs
According to a report in The Economic Times, Yes Bank has laid off at least 500 employees. The restructuring exercise, advised by a multinational consultant, could result in further layoffs in the coming days. The laid-off employees have been provided with a severance pay of three months’ salary.
Official Statements
A spokesperson for Yes Bank stated, “In our endeavour to be an agile, future-ready organisation which is leaner, faster, customer-centric, and operationally efficient, we periodically undertake a thorough review of the way we operate and optimise our workforce.”
The bank is focusing on becoming operationally efficient by optimizing its workforce, with a particular emphasis on digital banking to reduce manual interventions. This move comes as staff expenses for the lender increased by over 12% from ₹3,363 crore at the end of FY23 to ₹3,774 crore at the end of FY24.
Financial Context
Yes Bank’s stock closed flat at ₹24.02 on Tuesday, compared to the previous close of ₹23.95 on the BSE. The bank’s market capitalization stood at ₹75,268 crore.
Historical Context
This is not the first time Yes Bank has undergone significant restructuring. A similar exercise took place in 2020 after the current managing director, Prashant Kumar, took over following the Reserve Bank of India’s intervention, which saved the bank from collapse.
Future Outlook
The restructuring and cost-cutting measures, including the shift towards digital banking, are part of Yes Bank’s strategy to ensure long-term sustainability and operational efficiency. As the bank continues to adapt to the evolving financial landscape, more job cuts may be anticipated to streamline operations further.
Conclusion
Yes Bank’s recent layoffs are part of a broader effort to enhance operational efficiency and adapt to the increasing demand for digital banking solutions. While the move aims to position the bank for future growth, it also highlights the ongoing challenges in the banking sector and the need for continuous adaptation.