In a significant restructuring move, Axis Bank has terminated more than 50 mid-level managers as it reorganizes its business and slashes costs. The managers asked to quit comprise of executive vice-presidents and vice-presidents who led various supervisory functions in corporate and retail banking.
These managers were let go as their roles became redundant after the new CEO Amitabh Chaudhry reviewed the business, and could not find suitable jobs for them in the hierarchy, as per ET, which spoke to two people familiar with the bank’s staff reorganization. The exact number of executives retrenched could not be independently ascertained.
The lender, while replying to ET’s queries, said in a mail that changes are afoot at the bank to raise ‘productivity and efficiency’. However, it did refer particularly to the jobs lost, saying instead that reducing manpower was not central to its reorganization plans.
Rajesh Dahiya, Executive Director, Corporate Centre stated that the bank has been working on multiple initiatives aimed at streamlining processes and simplifying the overall organizational structure. While a few employees have opted for early retirement as a result of this process, the bank has no plans to reduce manpower.
The move follows the appointment of Amitabh Chaudhry as the new CEO, who has changed the organizational structure, brought in new people and tweaked the business strategy to a low-risk, high-growth orientation. Chaudhary’s focus is to continue investing in technology and risk management.
As is the norm, with a new CEO, mostly what follows is organizational shakeups and restructuring. How will these changes lead to better operational efficiency at the lender is something we will have to watch out for.