Yes Bank has reportedly terminated approximately 500 employees across various departments as part of a restructuring initiative aimed at cost-cutting and transitioning towards digital banking, according to The Economic Times. The bank is said to have provided severance pay equivalent to three months’ salary to the affected employees.
Sources cited by ET mentioned that Yes Bank initiated the restructuring following advice from a multinational consultant. The bank is focusing on becoming a more agile and customer-centric organization, aiming for operational efficiency through a leaner workforce and increased reliance on digital platforms over manual processes.
In response to inquiries, a Yes Bank spokesperson emphasized the bank’s commitment to optimizing its operations periodically to align with future readiness and operational efficiency goals. The bank highlighted its intention to deliver enhanced banking services to customers and maximize stakeholder value through these strategic initiatives.
The restructuring move is notable within the banking sector as Yes Bank becomes the first major player in recent years to announce layoffs, contrasting with ongoing hiring trends among other private banks.
In its Q4FY24 results announced in April 2024, Yes Bank reported a significant 123% year-on-year increase in net profit, surpassing analysts’ expectations. The bank maintained steady net interest margins (NIM) and recorded robust growth in non-interest income, reflecting a positive financial performance amid its strategic restructuring efforts.
