In an attempt to cut costs, Axis Bank has asked more than 50 mid-level managers to leave from job, according to The Economic Times report.
Some unconfirmed reports said that the weeding out exercise is also said to be part of removing underperformers. The new shocking move is under the advice of Amitabh Chaudhry, the new CEO of the bank.
It is learnt that the new CEO after reviewing the company found out 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.
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.