Yes Bank Lays Off 500 Employees Amid Cost-Cutting and Digital Transformation Efforts
Yes Bank, in an internal restructuring exercise, has laid off 500 employees, with more layoffs expected in the coming weeks, according to a report by The Economic Times. The private lender has cut positions across various verticals, from wholesale to retail, with the branch banking segment being the most affected, as per the report.
All employees, according to sources cited by The Economic Times, have been given three months of pay as severance. The move comes at a time when most private lenders are expanding their employee base and hiring. Yes Bank’s internal restructuring exercise, advised by a multinational consultant, has been undertaken primarily to improve efficiency and reduce operating costs.
Yes Bank’s operating expenses had grown by 17 percent last year. The private lender was spending Rs. 3,774 crore on its staff at the end of the last financial year. They had 28,000 employees at the end of the financial year 2024 and added 484 people in one year. Out of this staff, 23,000 belonged to the junior management category.
With higher operating expenses, Yes Bank’s operating profits were not faring well. The private lender, which has SBI as its biggest shareholder, grew by 6.4 percent from ₹3183 crore to ₹3386 crore in FY24, according to The Economic Times. To cut down costs, the bank is attempting to move away from manual intervention and towards digital banking.
A spokesperson told The Economic Times, “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.”
They also added, “We are committed to delivering the best of our banking services to our customers and delivering the full potential of the bank to our stakeholders.”
