As a part of its annual appraisal cycle, Paytm is reportedly considering a significant reduction in its workforce. The platform is said to be letting go of 20 per cent of its workforce from various departments.
This decision comes amidst heightened scrutiny from the Reserve Bank of India (RBI) regarding compliance issues with Paytm’s payment banks, as detailed in a recent report by MoneyControl.
However, in a recent update, Paytm has refuted claims of impending layoffs, asserting that it is not planning any such reductions in its workforce. Instead, the company has clarified that any changes in roles are solely based on performance evaluations rather than layoffs. Nevertheless, it acknowledges that layoffs are occurring within Paytm Payments Bank, citing the ongoing annual appraisal cycle as the reason for performance-based adjustments.
Although the exact number of employees facing termination remains uncertain, the reports suggests that this restructuring process commenced around two weeks ago, leaving many employees feeling uncertain about the security of their jobs. Responding to inquiries, a Paytm spokesperson downplayed the reports, attributing them to routine performance reviews that may result in job-role adjustments based on performance metrics.
According to sources, the manner in which the company is handling these potential layoffs has raised concerns. It is reported that HR personnel are informing individuals individually without any mention of severance packages. Instead, employees are being placed on a one-month performance improvement plan (PIP), which could ultimately lead to termination, followed by a 30-day notice period.
As Paytm continues to navigate through regulatory challenges, employees are eagerly seeking clarity and support during this turbulent period.
