In a recent development, One97 Communications, the parent company of Paytm, will be cutting roles as a part of its annual appraisal process. Additionally, it is reported that several departments within the company experienced significant impact, resulting in a 50 per cent decrease in headcounts.
According to reports, the company has purportedly requested employees to consider resigning as part of the ongoing restructuring within the organisation. While it was anticipated that some positions may be trimmed during the routine appraisal process, employees are now allegedly being encouraged to opt for ‘voluntary resignation’, as reported by Business Standard.
The report underscored that amongst the departments affected by the layoffs are marketing, telecommunications and PPBL (Paytm Payments Bank).
However, the company has called all layoff-related news. According to reports, Paytm has stated that its annual appraisal process will concentrate on role alignments and personal evaluations, with no emphasis on layoffs.
The company has been in the spotlight for two months following the RBI’s announcement of the deadline to cease Paytm Payments Bank’s services. Nevertheless, the National Payments Corporation of India (NCPI) has sanctioned One97 Communication to function as a third-party UPI service provider, enabling it to operate under the ‘multi-bank model’.
The layoff rumour surfaced sometime back with reports suggesting that the company will be letting go of 20 per cent of its workforce from various departments. This decision came 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.
