SUMMARY
This comes at a time when the RBI has barred the fintech major’s payments bank from conducting several businesses
As per a Paytm spokesperson, the layoff process has already begun two weeks ago
Meanwhile, shares of Paytm’s parent entity One97 Communications extended decline on Thursday (March 14), dropping over 4%, ahead of the March 15 deadline for Paytm Payments Bank services
Paytm’s parent entity One 97 Communications will likely trim more workforce across departments as part of its annual performance review.
Moneycontrol has first reported the development.
This comes at a time when the Reserve Bank of India (RBI) has barred the fintech major’s payments bank from conducting several businesses.
Citing people close to the development, Moneycontrol reported that the exact number of people who will be impacted by the Paytm layoffs remains unclear, “some departments have been asked to reduce their team size by as much as 20%.”
Inc42’s email queries to Paytm did not elicit any response till filing of this report.
The layoff process has already begun two weeks ago, the report added, citing a Paytm spokesperson who disputed the percentage of layoff and did not specify a number. The spokesperson added that the company is in the middle of an annual appraisal cycle which could lead to job cuts.
“We are in the midst of our annual appraisal cycle, a common practice across companies, where performance assessments may lead to adjustments based on performance evaluations and role suitability. It’s crucial to understand that this process is distinct from layoffs, a routine aspect of performance evaluations in any organization,” the spokesperson said in a statement as per the report.
The company is also focussing on implementing AI-powered automation in their operations, the spokesperson said, adding, “We continue to transform our operations with AI-powered automation to drive efficiency. This involves redefining certain roles and tasks to better align with our growth and cost-efficiency goals.”
Meanwhile, shares of Paytm’s parent entity One97 Communications extended decline on Thursday (March 14), dropping over 4% ahead of the March 15 deadline for Paytm Payments Bank services.
This also comes close on the heels of the National Highways Authority of India (NHAI) asking Paytm FASTag users to procure a new FASTag from another bank before March 15 to ensure a smooth travel experience and avoid inconvenience at toll plazas.
