Private sector lender Yes Bank has reportedly laid off at least 500 employees as part of a restructuring initiative, with more layoffs expected shortly.
According to a report by ET, the layoffs have impacted various sectors, including wholesale, retail, and notably, the branch banking segment.
This decision by the bank is significant as it marks the first time in several years that a private-sector bank has conducted layoffs.
The affected employees have been given severance pay equivalent to three months’ salary, the report stated.
“Yes Bank has initiated an internal restructuring exercise based on advice from a multinational consultant. So far, around 500 employees have been let go, and more layoffs are anticipated in the coming weeks,” a source familiar with the situation told ET.
Yes Bank confirmed its efforts to enhance operational efficiency by optimising its workforce.
Insiders indicated that the bank aims to reduce costs by focusing on digital banking and minimising manual intervention. The ongoing restructuring is expected to help the lender lower its operating expenses, which had increased by nearly 17% in the previous financial year.
In 2020, Yes Bank underwent a similar restructuring when managing director Prashant Kumar, with the support of the RBI, intervened to prevent the bank from collapsing. During that period, a significant number of senior staff members departed from the bank.
Comments
0 comment