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Paytm layoffs: More employees across departments may face axe in annual performance review, says report
Paytm layoffs have already begun two weeks ago and come as Paytm's Payment Bank has been barred by RBI from conducting several businesses.
Paytm layoffs: Paytm's parent company One 97 Communications will lay off more employees across departments in the annual performance review, it was reported. This comes as Paytm's Payment Bank has been barred by the Reserve Bank of India (RBI) from conducting several businesses.
Citing people in the know, 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 percent.”
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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 said the company is in the middle of an annual appraisal cycle which could lead to job cuts.
Paytm Layoffs: What company said in response?
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“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.”
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Paytm Layoffs: What employees said on the step?
An unnamed Paytm employee said as per the report, “There are orders from the management to restructure teams by reducing the headcounts across functions. People are being called by the HR one by one to inform them about the layoff."
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“I was communicated by the department head yesterday (March 12) about the order to trim workforce within the team. Not sure if the head would take the call or its from top level, but this will begin anytime soon. Other verticals have already initiated,” another said, adding, “This (20%) is over and above that. Ofcourse, it has nothing to do with performance."
