Axis Bank Cuts 3,000 Jobs As Headcount Shrinks 3% YoY On Tech-Driven Productivity Gains
Mumbai: Axis Bank reported that its workforce fell by around 3,000 employees year-on-year. Higher productivity and efficiency gains arising from sustained investments in technology were responsible for the reduction. The company did not go through a restructuring exercise.
Compared with nearly 1.04 lakh a year earlier, the bank's employee base stood at around 1.01 lakh at the end of FY26. It reflected a decline of about 3 percent. The fall in the workforce, according to Axis Bank Managing Director and CEO Amitabh Chaudhry, is a result of long-term tech investments that are now beginning to improve productivity across operations.
"The trend of headcount optimisation continues because the investments that we have made in technology over the years are starting to give us benefits in terms of productivity gains," said Chaudhry, during a post-Q4 earnings conference call on Saturday.
Over the last three or four years, the bank has consistently spent between 9 percent and 10 percent of its operating expenditure on technology, according to Chaudhry. He added that these investments are now helping streamline processes, improve efficiency, and optimize staffing needs. In simple terms, Axis Bank says better systems and automation have enabled employees to handle more work efficiently, reducing the need for incremental hiring.
The bank clarified that the workforce reduction happened across functions as part of broader productivity gains and that it was not concentrated in any specific business vertical. The lender continued physical expansion and added nearly 400 branches across India during FY26. It also required selective hiring training.
The workforce reduction has triggered a default question. Has AI replaced jobs at Axis Bank?. Axis Bank said artificial intelligence is currently being used more for process improvement than job replacement. Management indicated that 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 March quarter performance. Net profit came in at Rs 7,071 crore, compared with Rs 7,117 crore in the same quarter last year. The lender also announced a dividend of Re 1 per share for FY26.
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