Paytm parent company is set to reduce its workforce across departments as part of its annual performance review, as per reports published in MINT and Moneycontrol. The move comes as payment banks face scrutiny from the Reserve Bank of India (RBI) for lapses in due diligence.
While the exact number of affected employees remains undisclosed, according to sources, departments have been asked to reduce team sizes by up to 20 percent.
A Paytm spokesperson acknowledged that the ongoing appraisal cycle might result in performance-based job cuts, but did not give a number. They also added that rather than the performance exercise, more jobs would be affected by the company’s push towards artificial intelligence-powered automation.
“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.
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“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,” the spokesperson added.
The spokesperson also contested that these are not strictly layoffs as appraisal and performance reviews are “routine” company activity.
“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 stated.
On the other side, employees expressed concerns over the restructuring, alleging that affected staff is being placed on a one-month Performance Improvement Plan (PIP) with potential termination thereafter, without severance packages. Amid uncertainties, employees are actively seeking alternative opportunities.
Contrary to this development, during a town hall in February, Paytm founder Vijay Shekhar Sharma assured the company’s employees of their job security amid regulatory challenges and internal restructuring.
Source: livemint
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