Yes Bank lays off 500 employees amid restructuring drive
Yes Bank has started a restructuring process that involves laying off at least 500 employees, with the possibility of more layoffs in the upcoming weeks, as reported by the Economic Times. The bank is aiming to enhance operational efficiency and reduce costs through digitalization and workforce optimization. The restructuring covers various sectors from wholesale to retail banking, significantly impacting the branch banking segment. Affected employees have been offered severance pay equal to three months' salary
Strategy for a leaner, more efficient organization
Yes Bank confirmed its workforce optimization efforts as part of its strategy to become a leaner and more efficient organization. "In our pursuit to be a nimble, future-ready organization—leaner, faster, customer-centric, and operationally efficient—we periodically conduct a comprehensive review of our operations and workforce optimization," stated a spokesperson from the bank. The focus is on digital banking and minimizing manual processes to help lower operating expenses.
Digitalization drive to lower operating expenses
Yes Bank's emphasis on digital banking and reducing manual processes is projected to decrease operating expenses, which had surged by nearly 17% in the last fiscal year. As of FY24, the bank had 28,000 staff. The restructuring initiative is also anticipated to reduce employee expenses, which rose 12% from ₹3,363 crore in FY23 to ₹3,774 crore in FY24.
In Q4FY24, the bank reported 123% increase in net profit
Despite the ongoing restructuring and layoffs, Yes Bank continues to report improved operational profits. The bank reported a 123% year-on-year (YoY) increase in net profit for Q4FY24, rising to ₹452 crore from ₹202.4 crore in the same quarter last year. Profits increased sequentially by 95.2% compared to the previous quarter. Additionally, there was robust growth in non-interest income (NII), with a 56.3% increase YoY and a 31.3% rise quarter-over-quarter in Q4FY24.
