Private lender Yes Bank has recently undertaken a restructuring exercise that has resulted in the layoff of hundreds of employees. The layoffs have occurred in various departments, including wholesale, retail, and branch banking segments. According to a report in The Economic Times, Yes Bank has laid off at least 500 employees as part of this restructuring. It is possible that more layoffs will occur in the coming days, as suggested by multiple sources mentioned in the report.
The affected employees have been provided with a severance package equivalent to three months’ salary. A spokesperson for Yes Bank stated that this restructuring aims to enhance operational efficiency through workforce optimization. The decision to implement these layoffs was made based on the advice of a multinational consultant, according to an informed individual.
Focus on Operational Efficiency and Digital Banking
The spokesperson highlighted that Yes Bank is striving to become an agile and future-ready organization that is leaner, faster, customer-centric, and operationally efficient. As part of this goal, the bank is actively exploring ways to reduce costs and improve efficiency. One approach is to shift towards digital banking and minimize manual intervention. This strategic direction comes as the bank’s staff expenses have increased by over 12% between fiscal years 2023 and 2024. Staff expenses rose from Rs 3,363 crore at the end of FY23 to Rs 3,774 crore at the end of FY24.
YES Bank Mcap
As of June 2024 Yes Bank has a market cap of $9.03 Billion. Net profit of YES Bank rose 74.66% to Rs 1285.20 crore in the year ended March 2024 as against Rs 735.82 crore during the previous year ended March 2023.
