YES Bank Lays off 500 Employees Amid Cost-Cutting Efforts: Report
YES Bank Layoffs: Those affected by the layoffs have been offered severance packages equivalent to three month's salary, as per the report
YES Bank Layoffs: YES Bank, a private sector lender, has reportedly started a restructuring exercise resulting in the layoff of at least 500 employees, with the potential for further layoffs in the near future. These recent layoffs have affected various sectors within YES Bank, including wholesale and retail operations, but the branch banking segment has mainly borne a significant impact, according to The Economic Times report citing sources.
Those affected by the layoffs have been offered severance packages equivalent to three month's salary, as per the report.
“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 told the publication.
YES Bank has confirmed to the publication its intention to enhance operational efficiency by optimising its workforce.
“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. We are committed to delivering the best of our banking services to our customers and deliver the full potential of the bank to our stakeholders,” a spokesperson said in an email response, states the report.
The bank is strategically reducing costs by focusing on digital banking and streamlining manual processes. This ongoing restructuring initiative is expected to significantly lower the bank's operating expenses, which saw a nearly 17 per cent increase in the previous financial year, claims the report.
In addition, between FY23 and FY24, the lender's staff expenses increased by more than 12 per cent, rising from Rs 3,363 crore in FY23 to Rs 3,774 crore in FY24. As of the end of FY24, the bank employed approximately 28,000 individuals, marking an addition of 484 employees within the year. A significant portion of its workforce, which is over 23,000 employees, falls under the junior management category.
The bank has been striving to enhance its operational profitability. By the conclusion of FY24, its operating profit increased by 6.4 per cent to Rs 3,386 crore, compared to Rs 3,183 crore in the previous year.
YES Bank is the first private bank in multiple years to lay off staff, while the rest of the banks are hiring more staff.
Also Read: Microsoft Layoffs: Firm Fires Nearly 1,500 Employees From Different Departments
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