7,700 jobs cut at India’s top private banks as AI and automation reshape hiring - DETAILS

India’s leading private sector banks reduced their workforce by over 7,700 employees during FY26, reflecting a growing reliance on artificial intelligence, automation and digital technologies to handle routine banking operations. The trend points to a long-term transformation in how banks manage their workforce, with greater emphasis on technology and customer-focused roles.

Major lenders including HDFC Bank, Axis Bank and Kotak Mahindra Bank have moved away from the traditional model of expanding employee strength alongside business growth. Instead, they are investing in digital infrastructure to improve efficiency while redeploying staff into sales, relationship management and advisory functions.

The decline was largely concentrated among non-supervisory staff, with their numbers falling by more than 8,000. At the same time, the bank increased hiring across junior, middle and senior management positions, indicating a restructuring of its workforce rather than widespread layoffs.

Managing Director and CEO Sashidhar Jagdishan said the bank is deliberately moving employees from backend operations to customer-facing roles as technology improves operational efficiency. HDFC Bank has also expanded the use of its in-house AI platform, Neev, across customer service, card operations, trade finance, risk monitoring and employee workflows.

The bank's workforce stood at nearly 1,01,300 employees at the end of the fourth quarter of FY26, compared with around 1,04,400 a year earlier.

In its annual report, the bank said its continued investments in digitisation, technology and employee capability have strengthened operational efficiency. It added that while technology plays a key role in improving productivity and scale, its benefits are maximised when supported by skilled employees and disciplined execution.

Kotak Mahindra Bank follows the trendKotak Mahindra Bank also reported a smaller decline in employee strength during the financial year. Its standalone workforce fell by about 1,269 employees, from 75,323 as of March 31, 2025, to 74,054 by the end of FY26.

The reduction further highlights an industry-wide shift towards leaner operations supported by digital tools and automation.

Technology changing banking jobsThe trend is not limited to India. Global banking giants including JPMorgan Chase, Citigroup and Standard Chartered have also stated that artificial intelligence is expected to automate repetitive tasks, improve productivity and reduce the need for certain operational roles over time.

Activities such as account servicing, document verification, transaction processing and basic customer support are increasingly being managed through automated systems. As a result, banks are directing more employees towards areas that require human expertise, including relationship management, wealth advisory, sales and personalised customer service.

For banks, a leaner workforce can help improve efficiency and control costs while continuing to expand their business. For employees, however, the shift underscores the growing importance of digital skills, technology expertise and customer engagement capabilities in the evolving banking landscape.