Amidst regulatory scrutiny faced by Paytm’s payment banks, parent company One 97 Communications is reportedly set to downsize its workforce across departments as part of its annual performance review. The move comes amidst challenges from the Reserve Bank of India (RBI) over lapses in due diligence.
Uncertainty Looms Over Employee Retention
While the exact number of affected employees remains undisclosed, sources reveal that certain departments have been directed to reduce team sizes by up to 20 percent over the last two weeks. The looming job cuts have created uncertainty among employees, with concerns raised about potential terminations without severance packages.
Company Asserts Routine Performance Review
A Paytm spokesperson addressed the situation, stating that the ongoing appraisal cycle might result in performance-based job cuts. However, they emphasized that this process is routine and distinct from layoffs. The company’s focus on AI-powered automation is also highlighted as a factor influencing job restructuring. Despite assurances of job security from Paytm’s founder Vijay Shekhar Sharma, employees remain apprehensive amidst the organizational changes.
Employees Seek Alternative Opportunities
Employees, fearing job terminations, express concerns over the restructuring process. Some allege being placed on a one-month Performance Improvement Plan (PIP) with potential termination thereafter. Amid uncertainties, many employees are actively exploring alternative job opportunities. Reports indicate that over 6,000 talents from Paytm are currently available in the job market, reflecting the growing apprehension among the workforce.
