The past few months have seen about 15000 employees quitting Axis Bank. Most of those who have resigned are mid- and branch-level executives who were struggling to cope with the pressure to drive growth.
With the various functions of the Bank having been reorganised completely, most executives were left unclear about their work and what was expected of them. The change in culture had also made many of the older executives feel out of sync.
Now that many senior executives at the branches have resigned, business and customer servicing and general day-to-day functioning may be impacted for a while.
Presently, the Bank has a workforce strength of about 70,000, which it plans to enlarge by focussing on hiring in line with its expansion plans. It has seen a significant rise in hiring too this fiscal, having hired about 28,000 people. It is gearing up to hire about 4000 more. Axis Bank also plans to recruit about 30,000 employees in the next two financial years.
In April last year, the Bank had laid off over 50 mid-level managers as part of a massive restructuring to cut costs under Amitabh Chaudhry, who had taken over as the new CEO in January, 2019. Chaudhry had completely changed the organisational structure, taken on new people and altered the business strategy. He had changed the orientation of the bank towards low risk and high growth.
By bringing in new people on board and reducing the responsibilities of some of the existing senior executives then, the new CEO had left many of the older employees uncertain, insecure and uneasy. The spate of resignations had probably been triggered then.