Yes Bank cuts 500 jobs in cost-cutting move

Yes Bank, a private sector lender, has recently laid off at least 500 employees as part of a restructuring exercise. The layoffs have affected various verticals within the bank, with a significant impact on the branch banking segment. Employees who were let go have been provided severance pay equivalent to three months’ salary.

The decision to downsize comes as Yes Bank aims to enhance operational efficiency and optimize its workforce. The bank confirmed that it is striving to become a more agile, customer-centric, and operationally efficient organization. This restructuring is being carried out in consultation with a multinational consultant.

Sources familiar with the situation suggest that Yes Bank is focusing on reducing costs by emphasizing digital banking and reducing manual processes. By implementing this restructuring, the bank aims to decrease its operating expenses, which had increased by nearly 17% in the previous financial year.

In an effort to streamline operations, Yes Bank is also looking to trim its staff expenses. Between fiscal year 2023 and 2024, staff expenses grew over 12%, reaching Rs 3774 crore by the end of FY24. The bank currently employs around 28,000 individuals, with the majority falling under the junior management category.

This restructuring initiative follows a similar exercise that took place after Prashant Kumar assumed the role of managing director in 2020. At that time, several senior staff members exited the bank as part of the restructuring efforts.

Yes Bank’s decision to downsize is significant, as it marks the first instance of layoffs by a private sector bank in several years. While other private sector banks have been expanding their workforce, Yes Bank is taking a different approach to improve its operating profits.

As the bank navigates through these changes, it remains committed to delivering top-notch banking services to its customers and maximizing its potential for stakeholders. With State Bank of India as its largest shareholder, Yes Bank continues to focus on enhancing its operational efficiency and adapting to the evolving digital landscape.

The restructuring at Yes Bank underscores the evolving dynamics within the banking sector and the need for financial institutions to adapt to changing market conditions. By optimizing its workforce and embracing digital innovations, Yes Bank is positioning itself for long-term success in a competitive banking environment.