Paytm's parent company considers job cuts across departments
One 97 Communications, the parent company of fintech unicorn Paytm, is reportedly planning to reduce its workforce across various departments. As per Moneycontrol, the layoffs are as part of its annual performance review. Some departments have been ordered to trim team sizes by up to 20%, although the exact number of affected employees remains undisclosed. This comes amidst regulatory scrutiny from the Reserve Bank of India (RBI) over alleged lapses in due diligence.
Paytm denies layoffs, cites routine performance review
In response to reports on workforce reductions, a Paytm spokesperson clarified that the company is currently undergoing its annual appraisal cycle. The spokesperson emphasized that this process may lead to performance-based adjustments but should not be confused with layoffs. They also highlighted the company's ongoing transition toward AI-powered automation, which could potentially affect more jobs than the performance review itself.
Employee concerns rise amid restructuring and job cuts
Employees have voiced concerns over the ongoing restructuring, with fears of job terminations looming. Reports suggest that affected staff are being put on a one-month Performance Improvement Plan (PIP) with potential termination thereafter. The termination will not even include severance support. Some employees speculate that the number of layoffs this time could surpass the 1,000 job cuts made in December 2023 following AI adoption. Allegations of "silent layoffs" in January 2024 have also been raised by some staff members.
Paytm employees seek alternatives amid job security concerns
In the face of these uncertainties, Paytm employees are reportedly exploring other job opportunities. According to staffing company Xpheno, the job market currently has over 6,000 accessible talents from Paytm. Despite these concerns, Paytm founder Vijay Shekhar Sharma reassured employees about their job security during a town hall in February, amidst ongoing regulatory challenges and internal restructuring. Meanwhile, starting tomorrow (March 15), the Paytm Payments Bank will cease its operations.
