Paytm Fires 700 Employees, 2-Month Salary To Be Paid; Rs 250 Cr ESOPs Announced!
On Friday, Paytm (owned by One97 Communications Ltd.) said that it will offer Rs 250 crore in employee stock option plans (ESOPs) this year to its high performing employees and new hires.
What Does Paytm Say?
The digital payments platform Paytm will offer Rs 250 crore in employee stock ownership plans (Esops) and hire more than 500 people across multiple roles.
in a statement, the financial services company said that it will offer the Esops this year between its high performing employees and new hires, on Friday.
The company said, “This will widen the base of employees having company shares and will enable more people to become a stakeholder in the firm’s growth story,”.
What About Hiring?
Also, Paytm said it would hire over 500 people for multiple roles in addition to its ongoing hiring practices across the critical product and technology functions.
Currently, Paytm is believed to have an estimated 5,000 employees, is expected to hire personnel primarily for its financial services business, which includes insurance, lending and Paytm Money verticals.
The chief human resources officer at Paytm, Rohit Thakur said, “Paytm has a high-performance culture and follows a transparent process to evaluate and reward employees. We always ensure to provide ample growth opportunities and engage for feedbacks from time to time,” in the statement.
What About The Existing Employee Base?
Also, he said the company would not retrench employees who were at the lower end of its appraisal bell curve for at least two months.
Further, the statement said “After analyzing the current scenario, Paytm has offered those employees to continue to be on the rolls… for another two months, and receive all payments for this extended period,”.
Apart from this, Paytm also said that it is looking to let go of some employees who have underperformed in the last financial year.
While talking about the current crisis, Paytm said that it will retain these employees on their payroll for another two months and ensure that they receive all payments for this extended period.
Paytm said “Every year after taking into account the performance of each employee, we usually find that 5% to10% of our employee base are at the lower end of the bell curve. In such cases, we ask the employees to look for opportunities outside Paytm. This year we have found 500-700 employees have underperformed by our performance metrics and we will be retaining them for 2 months until they find better opportunities considering current times,”.
So far, Paytm is valued at about $16 billion following its last round of funding in November that was led by US asset management behemoth T Rowe Price with participation from Ant Financial and Soft-Bank.