One 97 Communications, the parent company of Paytm, is anticipated to reduce its workforce across various departments as part of its annual performance review. Moneycontrol was the first to report this development.
This decision coincides with the Reserve Bank of India (RBI) imposing restrictions on Paytm’s payments bank, preventing it from conducting certain operations. According to sources cited by Moneycontrol, the precise number of employees affected by the layoffs at Paytm is uncertain, but “some departments have been instructed to decrease their team size by up to 20%.”
Despite sending inquiries via email, Inc42 did not receive a response from Paytm by the time of reporting.
The layoff process reportedly commenced two weeks prior, as per the report, citing a Paytm spokesperson who disputed the percentage of layoffs and refrained from providing a specific figure. The spokesperson clarified that the company is currently in the midst of its annual performance appraisal cycle, which may result in job cuts.
“We are currently in the process of our annual appraisal cycle, a standard procedure in most companies, wherein performance evaluations may lead to adjustments based on performance appraisals and role suitability. It’s essential to note that this process differs from layoffs, which are a routine aspect of performance evaluations in any organization,” the spokesperson stated according to the report.
Furthermore, the spokesperson mentioned the company’s focus on integrating AI-driven automation into its operations. “We are continuing to modernize our operations through AI-powered automation to enhance efficiency. This entails redefining certain roles and tasks to better align with our growth and cost-efficiency objectives.”
Meanwhile, the shares of One97 Communications, Paytm’s parent company, continued their decline on Thursday (March 14), dropping by over 4% ahead of the March 15 deadline for Paytm Payments Bank services.
This development follows closely after the National Highways Authority of India (NHAI) urged Paytm FASTag users to obtain a new FASTag from another bank before March 15 to ensure seamless travel and avoid inconvenience at toll plazas.
