Job Cuts at Axis Bank: 3,000 Employees Laid Off in Efficiency Drive

Job Cuts at Axis Bank: 3,000 Employees Laid Off in Efficiency Drive

Axis Bank on Saturday reported a marginal decline in its employee headcount at the end of the financial year 2025-26, attributing the reduction to sustained investments in technology that have begun to yield productivity gains.

Speaking during a post-earnings conference call, managing director and chief executive Amitabh Chaudhry said the trend of headcount optimisation is a natural outcome of the bank’s long-term focus on digital transformation.

He noted that consistent investments in technology over the past few years are now improving operational efficiency and employee productivity across the organisation.

The bank’s workforce declined to around 1.01 lakh employees in FY26 from 1.04 lakh in the previous fiscal year, marking a reduction of roughly 3,000 employees. Axis Bank clarified that the decline was not targeted at any specific business segment but occurred broadly across functions, even as the bank continued expanding its physical presence.

During the year, the lender added nearly 400 new branches nationwide, which required additional hiring and training efforts alongside increased digitisation initiatives. The bank emphasised that its strategy continues to balance branch expansion with technology-led efficiency improvements.

Chaudhry highlighted that Axis Bank has consistently allocated between 9 per cent and 10 per cent of its operating expenditure towards technology over the past three to four years.

He added that these investments were made irrespective of business cycles, with the aim of building a long-term strategic advantage.

Despite the focus on automation, the bank indicated that artificial intelligence has not yet significantly contributed to reducing headcount. Currently, AI tools are primarily being used to streamline processes and accelerate end-to-end transaction times rather than replace roles.

On the financial front, Axis Bank reported a largely flat performance for the March quarter, posting a profit of Rs 7,071 crore compared to Rs 7,117 crore in the same period last year.

The bank also announced a dividend of Rs 1 per share for FY26, as per its stock exchange filing.

(Except for the headline, this story has not been edited by VoM News staff and is published from a syndicated feed.)