Latest News

Paytm’s Parent Company Planning Workforce Reduction amidst Regulatory Scrutiny


➡️ Click here to join our Whatsapp Group

One 97 Communications, the parent company of fintech unicorn Paytm, is reportedly planning to downsize its workforce in various departments. According to Moneycontrol, the layoffs are part of the company’s annual performance review. While the exact number of affected employees has not been disclosed, some departments have been instructed to reduce their team sizes by up to 20%. This downsizing comes at a time when the Reserve Bank of India (RBI) is scrutinizing the company for alleged lapses in due diligence.

In response to reports of job cuts, a spokesperson from Paytm clarified that the company is currently undergoing its annual appraisal cycle. They emphasized that this process may result in adjustments based on performance, but it should not be confused with layoffs. The spokesperson also highlighted that the company is transitioning towards AI-powered automation, which may potentially impact more jobs than the performance review itself.

Employees are expressing concerns about the ongoing restructuring and fear the possibility of job terminations. Reports suggest that affected staff members are being placed on a one-month Performance Improvement Plan (PIP), with potential termination thereafter. Notably, severance support will not be provided in these cases. Some employees speculate that the number of layoffs this time could exceed the 1,000 job cuts that occurred in December 2023 after the adoption of AI. There have also been allegations of “silent layoffs” raised by certain staff members in January 2024.

In light of these uncertainties, Paytm employees are reportedly exploring other job opportunities. According to staffing company Xpheno, there are currently over 6,000 accessible talents from Paytm in the job market. Despite these concerns, Paytm founder Vijay Shekhar Sharma reassured employees about their job security during a town hall meeting in February, amidst ongoing regulatory challenges and internal restructuring.

Meanwhile, starting tomorrow (March 15), the operations of Paytm Payments Bank will cease.

Leave a Reply

Your email address will not be published. Required fields are marked *