Yes Bank cuts 500 jobs amid internal restructuring: According to a report by The Economic Times, Yes Bank has laid off 500 staff as part of an internal reorganisation exercise. More layoffs are expected to occur in the coming weeks.
According to the article, the private lender has let go of employees in a variety of verticals, including retail and wholesale, with the branch banking sector feeling the most of the effects.
The Economic Times cites sources stating that all employees received three months’ salary as severance. The majority of private lenders are adding more people and growing their staff at the same time as this move.
The primary goals of Yes Bank’s internal restructuring initiative, which was carried out on the recommendation of an international consultant, were to increase operational efficiency and lower expenses.
The operational costs of Yes Bank increased by 17% in the previous year. By the end of the previous fiscal year, the private lender was spending Rs. 3,774 crore on personnel. By the end of the 2024 fiscal year, they employed 28,000 individuals, having hired 484 new hires in just one year. Of this workforce, 23,000 were in the junior management division.
Their operating profitability were suffering due to increased operating expenses. According to ET, the private lender increased 6.4% from ₹3183 crore to ₹3386 crore in FY24. SBI is the lender’s largest shareholder.
In an effort to reduce expenses, the private lender is trying to shift from manual intervention to digital banking.
A representative for the company told ET, “We periodically perform a thorough evaluation of the way we operate and optimise our staff as part of our goal to be an agile, future-ready business which is smaller, faster, customer oriented, and operationally efficient.”
“We are dedicated to delivering the best of our banking services to our customers and delivering the bank’s full potential to our stakeholders,” they continued.
A similar procedure was previously carried out by Yes Bank in 2020 when managing director Prashant Kumar took control with RBI backing to save the company from failing. Many senior employees of the bank left at the time.
