Yes Bank Restructuring Leads to Layoffs

Synopsis: Yes Bank has laid off 500 employees as part of a restructuring plan to enhance operational efficiency. The affected employees received three months' severance pay. The bank aims to cut costs by focusing on digital banking solutions, amidst rising staff expenses. This initiative follows a previous restructuring in 2020 after the RBI's intervention. Yes Bank's stock remained stable, closing at Rs24.02.

Private lender Yes Bank has embarked on a significant restructuring exercise, resulting in the layoff of approximately 500 employees. This move, aimed at optimizing the bank's operations and enhancing efficiency, affects employees across various segments, including wholesale, retail, and branch banking.

The bank has provided severance pay equivalent to three months' salary to the affected employees. A spokesperson for Yes Bank stated that the layoffs were part of an effort to create a more agile, future-ready organization that prioritizes customer-centric and operational efficiency.

The restructuring is advised by a multinational consultant and aligns with Yes Bank's strategy to cut costs by leaning towards digital banking and reducing manual interventions. This shift comes in response to the rising staff expenses, which increased by over 12% from Rs3,363 crore in FY23 to Rs3,774 crore in FY24.

Yes Bank's shares remained relatively stable, closing at Rs24.02 on Tuesday, with the bank's market capitalization standing at Rs75,268 crore. This latest round of layoffs follows a similar workforce optimization effort in 2020, implemented after the Reserve Bank of India's intervention that saved the bank from a financial crisis.