Axis Bank has employed the age-old strategy of letting people go for cost-cutting purposes. The new lead of Axis Bank has already laid off about 50 mid-level managers that were in charge of functions in corporate and retail banking.
The new CEO of Axis Bank is responsible for this decision. How will this affect the employees’ life after being laid off?
Employee Layoff Strategy by The New CEO
With effect from January 1, 2019, Axis Bank has a new CEO, Amitabh Chaudhry, who was of the opinion that some of the roles in the bank are unnecessary. These roles include some top-level employees, like executive vice-presidents and vice-presidents as well. While the exact number of people laid off is not clear, there may be over 50 people who bore the brunt of the brutal decision.
As per some people who handle the resources and hierarchy, the bank wasn’t able to find any other suitable jobs for those who were affected by these layoffs. “They have been asked to look for other jobs. This has rattled many old-timers in the bank.”
The CEO, Chaudhry, reviewed the business and this is his new strategy for boosting business and restructuring the organization is one of the ways. This strategy is oriented to a Low-risk high-growth formula.
Employees’ Negative Reaction To the Layoffs
Axis Bank said that there were going to be some changes in the bank’s operating process to increase the business. However, the bank said that employee layoffs were not included in the planned strategy.
The employees of the bank have not taken this decision in a positive way and some of them are considering quitting their current jobs themselves. The culture at a firm is expected to change when the leadership is changed. Apparently, Chaudhry has taken control of the firm and takes all the decision.
As per sources, “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.”
Chaudhry has made it clear that by making the IT, digital, head of coverage and a new post of chief credit officer report to him, these fields are crucial for the future of the bank.
Is laying people off the correct decision to make in order to optimize an institution? Share your thoughts with us in the comments section.
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