Yes Bank Lays Off 500 Employees Amid Cost-Cutting Restructuring Efforts: Report

Private sector lender, Yes Bank, in a latest development of internal restructuring exercise, has reportedly laid off 500 employees across various verticals, including wholesale, retail, and banking branch, according to a report by The Economic Times.

According to the report, each employee sacked has been given three months of pay as severance. Moreover, citing the sources, the report added that there would be likely more layoff in the coming week.

The bank in an effort to cut costs is also transitioning from manual interventions to digital banking as part of a broader strategy to hone operations and become a more agile, as per the Economic Times reports citing a spokesperson.

Rising Operating Expenses

The Banks operating expenses by last year has surged 17 per cent, with the staff expenses reaching Rs 3,774 crore by the end of the fiscal year 2024.

According to the report, the bank has 28,000 employees with with 23,000 in the junior management category. Despite adding 484 employees in the past year, the bank is now focused on reducing its workforce to manage costs more effectively.

Historical context

Although, this is not the first time the private lender has undergone a restructuring. Earlier in 2020, under the leadership of the current managing director, Prashant Kumar, after the Reserve Bank of India intervened to save the bank, many senior staff exited.

Shares performance

The shares of the company on Wednesday at 1:26 pm IST were trading in red down by 0.54 per cent, reaching at Rs 23.89.