Yes Bank, in an internal restructuring exercise, has terminated 500 employees, with more headcount reduction to come in the next few weeks, according to a report by The Economic Times.
The Bank has let go of people across various verticals, from wholesale to retail, with the branch banking segment dealing with the most impact, according to the report.
All employees, according to sources cited by The Economic Times, have been given three months of pay as severance. The move comes at a time when most Banks are expanding their employee base and hiring.
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Yes Bank’s internal restructuring exercise, at the advice of a multinational consultant has been done to primarily improve efficiency and reduce operating costs.
Yes Bank’s operating expenses had grown by 17 per cent last year. The bank was spending Rs. 3,774 crore on its 28,000 staff at the end of the last financial year. 23,000 of this staff belonged to the junior management category.
With higher operating expenses, their operating profits were not faring well. The bank, which has SBI as it’s biggest shareholder, grew 6.4 per cent from Rs. 3183 crore to Rs. 3386 crore in FY24, according to ET.
Yes Bank has previously undergone a similar exercise in 2020.
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