Axis Bank Cut 3,000 Staff While Opening 400 New Branches

Axis Bank, India’s third-largest private sector lender, has reduced its workforce by over 3,100 employees during the 2026 fiscal year. 

The bank’s management cited sustained investments in technology and automation as the primary drivers of enhanced productivity, allowing the institution to handle higher business volumes with a leaner staff.

Axis Bank Productivity Gains Over Targeted Cuts

The reduction was a gradual process throughout the year rather than a singular mass layoff event. 

According to the bank’s latest disclosures, the total headcount dropped from approximately 1,04,400 in March 2025 to 1,01,300 by March 2026.

Subrat Mohanty, Executive Director at Axis Bank, clarified that the decrease is an outcome of “headcount optimization” stemming from broad-based productivity gains. 

These efficiencies have been realized across branches and customer touchpoints through improved digitization, employee training, and the streamlining of internal processes. 

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The Technology Playbook

For the past four years, Axis Bank has consistently allocated 9% to 10% of its operating expenses toward technology.

This aggressive spending remained steady regardless of business cycles, reflecting a long-term strategic bet on digital-first banking.

While the bank is seeing a “return on automation,” management noted that the structural impact of Artificial Intelligence (AI) is still in its early stages. 

Currently, AI is being used to accelerate transaction execution and data usage, but its full potential to further reshape headcount is expected to manifest more clearly over the next fiscal year as the technology matures.

Financial Context and Market Reaction

Despite the efficiency gains and reduced staff costs, Axis Bank reported a relatively flat net profit of ₹7,071 crore for the March quarter, compared to ₹7,117 crore in the previous year. 

Analysts suggest that while technology is driving operational savings, the bank is still balancing these gains against the costs of branch expansion and slower-than-expected revenue growth in certain segments. 

The bank declared a dividend of ₹1 per share for FY26.

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