Axis Bank Signals Further Workforce Reduction After Major Employee Decline

Axis Bank has indicated that it may further reduce certain workforce roles as artificial intelligence (AI) and automation continue to improve productivity across its operations. The private sector lender said some mid-office and back-office positions could be eliminated over time as technology takes over routine processes and enhances operational efficiency.

The comments were made during the bank’s first-quarter earnings interaction, where the management was asked about the impact of artificial intelligence on employment and the steps being taken to improve productivity. In response, Axis Bank said that some roles in support functions could be reduced as part of its efforts to streamline operations and increase efficiency.

The statement follows a decline in the bank’s workforce during FY26. Based on its FY25 employee strength of 104,453, the reported 3% year-on-year reduction represents a fall of around 3,100 employees. The decline occurred even as the bank continued expanding its physical presence by adding new branches, indicating that technology-driven productivity improvements played a role in changing staffing requirements.

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Axis Bank Managing Director and Chief Executive Officer Amitabh Chaudhry had earlier attributed the workforce reduction to technology-led efficiency gains rather than a slowdown in business growth. He said that while the bank added around 400 branches during the year, overall employee numbers declined due to improvements in productivity at both employee and branch levels.

The bank has been increasing investments in digital platforms, automation and artificial intelligence as part of its broader technology strategy. Management has highlighted that a significant portion of operating expenditure has been directed towards digital capabilities to support faster services, improved processes and greater operational efficiency.

While Axis Bank did not provide a timeline or estimate for future workforce reductions, its latest remarks indicate that technology adoption could continue reshaping roles within the organisation. The impact is expected to be more visible in mid-office and back-office functions where automation can handle repetitive tasks, allowing the bank to focus resources on areas requiring specialised skills and customer-facing operations.

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