Banks across India, Vietnam, and Germany have begun reducing headcount as multi-year investments in AI and digital transformation translate into measurable productivity gains in core banking operations.
These workforce cuts sit within a broader industry shift in which banks are prioritising cost efficiency and faster execution
However, the human cost can be significant: layoffs disrupt livelihoods, weaken morale, and strain employer/employee trust, while also carrying reputational risk if stakeholders perceive the transition as prioritising automation over responsible workforce management. Axis Bank, Sacombank: largescale job cuts in India, Vietnam In 2025, India’s Axis Bank cut 3,000 jobs as sustained investments in AI began to generate operational efficiencies. For example, 65% of loan sanction letters are now partially generated using AI, while more than 115 million document-related tasks have been processed This reflects higher operational output per employee, faster turnaround times for routine processes, and growing automation across administrative functions.
On the customer side, Axis Bank’s generative AI assistant, ADI, handled more than 10 million chat interactions, indicating rapid adoption of AI-based servicing tools and reduced reliance on branches and human-led customer service for routine queries. Similarly, at Vietnamese banks, repetitive tasks such as data entry, verification processes, and manual document handling are increasingly being automated. Listed Vietnamese banks cut more than 3,000 jobs in the first quarter of FY 2026, with Sacombank alone accounting for nearly 85% of the decline.