The Indian banking sector has undergone rapid transformation due to digitalisation, regulatory reforms, competitive pressures, and changing customer expectations. Private sector banks, in particular, continuously engage in strategic adaptation to sustain competitiveness and operational efficiency. While strategic adaptation enables organisational survival and growth, it also has profound implications for employees in terms of job roles, performance expectations, stress levels, and career development. This study examines the impact of strategic adaptation on employees working in private sector banks in Tamil Nadu. Using primary data collected from 398 bank employees across selected private banks, the study adopts a descriptive and causal research design. Structural Equation Modelling (SEM) is employed to analyse the relationship between strategic adaptation practices and employee outcomes such as job performance, job satisfaction, stress, and organisational commitment. The findings reveal that strategic adaptation significantly influences employee performance and commitment, while inadequate change management increases stress levels. The study provides practical insights for banking management to implement adaptive strategies in a more employee-centric manner.