BANK LAYOFFS! 500 STAFFERS OF THIS LEADING BANK FIRED; MORE JOB CUTS LIKELY - DETAILS

In a bid to streamline operations and bolster efficiency, Yes Bank has commenced a comprehensive restructuring initiative, resulting in the layoff of 500 employees, sources familiar with the matter revealed to Economic Times (ET).

The layoffs, affecting multiple verticals including wholesale and retail banking, predominantly impacted the branch banking segment. Employees who were let go received severance pay equivalent to three months' salary, underscoring the bank's commitment to fair transition practices.

Yes Bank layoffs

According to sources quoted by ET, Yes Bank's decision to restructure stems from advice provided by multinational consultants. “Yes Bank has launched an internal restructuring exercise at the advice of a multinational consultant. So far, around 500 have been asked to go and we can see more sackings in the coming weeks,” a person aware of the development. The ongoing initiative is expected to pave the way for further reductions in the workforce as the bank continues to optimize its operational model.

Responding to queries, a Yes Bank spokesperson emphasized the institution's focus on agility and future-readiness, stating, "We periodically undertake a thorough review of the way we operate and optimize our workforce to ensure operational efficiency and customer-centricity."

Yes Bank's Strategic Shift Towards Digital Banking

Sources close to the development highlighted Yes Bank's strategic pivot towards digital banking solutions, aimed at reducing manual intervention and cutting down on operational expenses. “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,” a spokesperson said in an email response to ET. The move comes in the wake of a significant rise in operating expenses, which grew by nearly 17% in the previous fiscal year.

The bank, which reported a 6.4% increase in operating profit at the close of FY24, has been under pressure to improve its financial performance following a rescue effort led by the Reserve Bank of India in 2020.

Yes Bank's latest workforce restructuring marks a departure from recent trends among private sector banks, which have been actively hiring. The institution, majority-owned by the State Bank of India, faces challenges in enhancing operating profits amidst competitive pressures in the banking sector.

2024-06-26T14:11:39Z dg43tfdfdgfd