Yes Bank Lays Off 500 Employees Amid Restructuring Efforts

Yes Bank Lays Off 500 Employees Amid Restructuring Efforts

Yes Bank undergoes major restructuring, letting go of 500 employees to cut costs and boost efficiency.

Share This News

Yes Bank has laid off 500 employees as part of an internal restructuring, with more layoffs expected in the coming weeks, according to The Economic Times. The private bank has cut jobs across various departments, with the branch banking segment being the most affected.

Employees affected by the layoffs will receive three months of severance pay, sources told The Economic Times. This move comes as most private lenders are expanding their workforce.

The restructuring, advised by a multinational consultant, aims to improve efficiency and reduce operating costs. Last year, Yes Bank’s operating expenses increased by 17%, spending ₹3,774 crore on staff at the end of the financial year. The bank had 28,000 employees at the end of FY24, adding 484 employees in one year. Of this, 23,000 were in junior management.

Despite higher operating expenses, Yes Bank’s operating profits grew by only 6.4%, from ₹3,183 crore to ₹3,386 crore in FY24, according to The Economic Times. The bank now focuses on reducing costs by shifting towards digital banking and minimising manual processes.

A Yes Bank spokesperson stated, “In our endeavour to be an agile, future-ready organization 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 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.”

Yes Bank previously underwent a similar restructuring in 2020 when Managing Director Prashant Kumar, with the support of the RBI, took over to save the company. During that time, many senior staff members left the bank.

Joyville