Not Infosys or TCS, 100 senior employees shown the door at THIS IT firm

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Axis Bank, India's one of the top private sector lenders, has reportedly asked over 100 senior employees to leave, with the bank's CEO Amitabh Chaudhry clarifying that the move was part of its routine annual appraisal cycle. The layoffs were revealed following the bank's Q4 FY25 earnings announcement, raising questions about the extent of internal restructuring.

Commenting on the reports, Chaudhry said, "As is the case in any organisation, we conduct a detailed appraisal cycle at the end of each financial year. Many employees are rewarded and promoted, while some may fall short in terms of performance, leading to difficult conversations." He added that the banking sector currently faces multiple challenges, which have affected employee performance across various verticals.

"On one side, the bank is investing heavily in certain areas. In some other areas, given the performance and how some people might have fared, you might see some individuals exiting — but that happens every year," Chaudhry noted. He insisted that the layoffs were "nothing unusual" and were aligned with Axis Bank's regular performance review mechanisms.

The comments come as Axis Bank reported a mixed set of numbers for the January-March 2025 quarter. The private lender posted a net profit of Rs 7,117 crore, which remained flat compared to the previous year. Its operating profit witnessed a modest 2 percent year-on-year increase, rising to Rs 10,752 crore for Q4 FY25.

Axis Bank's Net Interest Margin (NIM) for the fourth quarter stood at 3.97 percent, improving by 4 basis points sequentially. Meanwhile, operating revenue grew 4 percent year-on-year to Rs 20,590 crore, up from RS 19,855 crore during the same period last year.

Despite the layoff reports, analysts believe the bank's financials indicate stability, though some point to margin pressures and cautious growth strategies amid a volatile economic environment. Industry experts also highlight that regular performance-based exits are common among private sector banks, particularly at a time when digital transformation and competitive pressures demand higher efficiency and agility.

While the move has triggered conversations about job security in the banking sector, Chaudhry's remarks suggest that Axis Bank remains focused on rewarding high performers while making difficult but necessary decisions in other cases.