Paytm is reportedly considering a significant reduction in its workforce as part of its annual appraisal cycle. The platform is said to be letting go of 20% 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 refuted claims of impending layoffs and 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.
The exact number of employees facing termination remains uncertain, but the reports suggest that this restructuring process commenced around two weeks ago, leaving many employees feeling uncertain about their job security. According to sources, the way the company is handling these potential layoffs has raised concerns. 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.
