Axis Bank sees further scope to reduce its workforce as artificial intelligence and automation improve productivity, with the lender indicating that some mid-office and back-office roles could be eliminated over time.
Responding to a question on whether artificial intelligence would affect jobs and how the bank plans to improve productivity during its first-quarter earnings interaction, the management said, "Few mid-office and back-office job roles can be eliminated to improve productivity."
The comments come months after Axis Bank reported a 3% year-on-year decline in its workforce in FY26. Based on the bank's FY25 employee count of 104,453, the reduction works out to about 3,100 employees, even as it continued to expand its branch network.
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The latest remarks suggest the lender expects technology to play a larger role in improving operational efficiency across the organisation. Management did not specify a timeline for potential workforce reductions or indicate the number of roles that could eventually be affected.
During the FY26 earnings call, Managing Director and Chief Executive Officer Amitabh Chaudhry attributed the decline in employee strength to technology-led productivity gains rather than slower business expansion.
"While we added 400 branches during the year, our total workforce declined by 3% year on year, driven by technology-led efficiency gains at both employee and branch levels," Chaudhry had said.
He also highlighted the bank's sustained investment in technology, saying it had consistently allocated a significant share of operating expenditure to digital capabilities over the past several years.
Axis Bank has been investing in automation, digital platforms and artificial intelligence to improve productivity while expanding its physical network. The bank's latest comments indicate those efforts could further reshape staffing requirements, particularly across mid-office and back-office functions, as technology assumes a larger role in routine operations.
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