Axis Bank to Cut Headcount in Q4FY26 Amid Increased Investment in Technology

Axis Bank Sees Reduction in Employee Headcount Amid Technology Investments

Axis Bank has reported a reduction in employee headcount as of the end of the fiscal year 2026, due to the private lender's investments in technology across the years, which have given productivity benefits.

The bank's managing director and chief executive, Amitabh Chaudhry, stated that the trend of headcount optimisation continues because the investments made in technology over the years are starting to give benefits in terms of productivity gains. During the year, Axis Bank saw a fall in employee headcount to 1.01 lakh in FY26, as compared to 1.04 lakh in the previous fiscal year, resulting in a reduction of about 3,000 employees.

The bank clarified that there is no specific segment where workforce reduction has been targeted; rather, it has been broad-based, even as they continue to improve productivity at bank branches. During the year, the bank added around 400 branches across the country, resulting in more training of people and additional digitisation.

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The bank further added that it has seen a continued trend in investment in technology, employee training, and productivity gains every quarter. The technology investments have been fairly consistent over the last three to four years, at between 9 percent to 10 percent of the bank's operating expenditure. However, the bank said that the benefit of artificial intelligence is yet to show up in headcount reduction, as AI is now being used only for fast-tracking processes and speeding up end-to-end transactions.

In its earnings report, India's third-largest private lender by market cap reported a flat profit figure for the March quarter at Rs 7,071 crore, as compared to Rs 7,117 crore in the previous corresponding period. The bank also declared a dividend of Rs 1 per share for FY26.