Paytm Layoffs: A Report Says Fintech Will Reduce Employment As Part Of Annual Appraisal Cycle

According to a Moneycontrol story quoting insiders, One 97 Communications, the parent company of Paytm, is apparently planning to carry out another wave of layoffs across many divisions as part of its annual performance appraisal. This action is in line with the Reserve Bank of India’s (RBI) increased investigation into Paytm Payment banks’ failures to do enough due diligence.

The precise number of workers impacted is yet unknown, but the report indicates that certain departments have been ordered to reduce their workforces by as much as 20%. The article states that the reorganization process started two weeks ago.

A Paytm representative disputed the proportion of layoffs mentioned in the paper, although she would not provide a precise figure. Rather, the individual said that the organization is now going through its yearly performance review procedure, which may lead to performance-based job losses. Furthermore, they emphasized that, according to the article, this is a component of a larger AI-driven automation project that may have an impact on certain positions.

“We are now in the middle of our yearly appraisal cycle, which is a standard procedure for all firms. Performance reviews may result in modifications depending on position fit and performance assessments. The representative told Moneycontrol, “It’s important to realize that this procedure is different from layoffs, which are a standard part of performance reviews in any organization.

The business also emphasized that it is still working to incorporate AI-driven automation into its operations, and it hinted that this would have further implications for certain positions.

“In order to increase productivity, we’re still automating tasks using AI. The statement said, “This entails redefining certain jobs and duties to better align with our development and cost-efficiency objectives.

An employee who was included in the report claims that management has given orders to reorganize teams by reducing the number of employees in each function. HR is reaching out to each employee personally to let them know about the layoffs. Furthermore, the employee reports in the report that the corporation is putting certain employees on a one-month performance improvement plan starting in March, which will probably lead to their firing, rather than offering severance compensation. There will be a 30-day notice period that follows this.