Yes Bank, a leading private sector lender, has recently made headlines with the decision to lay off at least 500 employees as part of a strategic restructuring exercise. This move, confirmed by multiple sources familiar with the situation, has caused a ripple effect across various departments, with a particular focus on the branch banking segment.
The affected employees have been provided with a severance package equivalent to three months’ salary, reflecting the bank’s commitment to handling the situation responsibly.
This development is significant as it represents a break from the trend of private sector banks actively recruiting staff in recent years. Yes Bank’s decision to downsize comes as part of an internal restructuring exercise advised by a multinational consultant. The layoffs are expected to continue in the coming days as the bank streamlines its operations.
Sources indicate that Yes Bank aims to reduce expenses by prioritizing digital banking and streamlining manual processes. The restructuring initiative is projected to contribute to a substantial decrease in operational costs, following a surge in operating expenses in the previous financial year.
In a bid to enhance operational efficiency, the bank has strategically evaluated its workforce to optimize resources. A spokesperson for Yes Bank affirmed this commitment, stating, “We are dedicated to delivering exceptional banking services to our customers and maximizing the bank’s potential for our stakeholders.”
Yes Bank’s recent actions echo a similar process initiated in 2020 under the leadership of current managing director Prashant Kumar. Following the bank’s rescue from collapse with assistance from the Reserve Bank of India, a number of senior staff members exited the organization.
The bank’s partnership with State Bank of India, its largest shareholder, has posed challenges in improving operating profits. Despite these obstacles, Yes Bank reported a 6.4% increase in operating profit at the close of the fiscal year, demonstrating a resilient approach to financial sustainability.
