Axis Bank reported a reduction of around 3,000 employees in FY26, bringing its total workforce to nearly 1.01 lakh. The bank clarified that this decline is not due to restructuring but is mainly the result of efficiency gains from long-term digital investments and automation. It also highlighted that technology spending of 9–10% of operating expenses has improved productivity across operations.
The workforce reduction was spread across different departments and not limited to any single business area. At the same time, Axis Bank continued expanding physically by adding nearly 400 branches in FY26, which also required selective hiring and training. The bank also stated that AI is currently being used to improve processes and speed up transactions rather than replace jobs.
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What MD and CEO said regarding reducing headcount
According to News 18 reports, MD and CEO Amitabh Chaudhry said that, 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”, as said during the post-Q4 earnings call. These investments are helping employees handle more work efficiently, reducing the need for additional hiring.
He said the bank has spent 9–10% of its operating expenses on technology over the past 3–4 years. These investments are now helping make work faster, improve efficiency, and manage staff better.
To say simply, better systems and automation are helping employees do more work easily, so the bank does not need to hire many new people.
Was the layoff limited to one department
The bank said the job cuts were not in just one department. Instead, they happened across different teams due to overall better efficiency and productivity.
At the same time, Axis Bank continued to grow by opening nearly 400 new branches across India in FY26. This also created some jobs, as the bank hired and trained people where needed.
How is technology leading to layoffs
Axis Bank said artificial intelligence is being used mainly to improve processes, not replace jobs. The management explained that AI tools are helping make work faster and smoother, especially in completing transactions, rather than taking over employee roles.
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Outlook and financial performance
As per News 18 reports, Axis Bank expects higher productivity in the next 18–24 months as digital banking usage grows. Its Q4 FY26 profit remained almost unchanged at Rs 7,071 crore, compared to Rs 7,117 crore last year. The bank also announced a dividend of Re 1 per share.
The job cuts show how technology is changing banking. Work is becoming faster and easier, so the bank does not need to hire many new employees.
At the same time, the bank is still growing by opening new branches and hiring in some areas, keeping a balance between growth and efficiency.
