In a bid to overhaul its business and cut costs under a new leader, Axis Bank has laid off over 50 mid-level managers, The Economic Times reported. The terminated executives led various functions in corporate and retail banking.
Amitabh Chaudhry, the new CEO of the bank from January 1, 2019, reviewed the company and decided that these supervisory roles were redundant. The bank could not find other suitable jobs for these people and let them go, sources told the paper. “They have been asked to look for other jobs. This has rattled many old-timers in the bank,” one person said. Moneycontrol could not independently verify the claims made in the report.
Axis Bank responded to the ET report by saying that changes were taking place in the bank to raise efficiency but manpower reduction was not a part of the plan. Skirting the terminations, the lender said, “While a few employees have opted for early retirement as a result of this process, the bank has no plans to reduce manpower.”
Chaudhry has embarked upon a new strategy for the bank’s operations ever since he took charge, which is one of low risk and high growth. He has brought in new people and changed the organisation structure.
The cultural change brought in by Chaudhry has not been accepted positively by everyone. “There is some unease at the way new people have been brought in while some in the senior management from among the old-timers have been left with truncated portfolios. Some have left and some are contemplating moving out,” one of the sources cited above said.