More Paytm Payments Bank employees to lose their jobs as part of company’s annual appraisal cycle

This move comes as Paytm’s payment banks are under the microscope from the Reserve Bank of India (RBI) for not doing their due diligence properly, according to a report by MoneyControl.

Update: Paytm has refuted reports indicating layoffs within the company, asserting that they are not conducting any such workforce reductions. They clarified that any role changes are solely based on performance evaluations rather than layoffs.However, they did acknowledge that layoffs are occurring within Paytm Payments Bank. “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,” Paytm spokesperson said in the statement.

While the exact number of people who will be asked to leave is not clear, insiders have told the publication that some departments have been asked to cut their teams by up to 20 percent. This whole restructuring process began about two weeks back, leaving a lot of employees feeling pretty uncertain about their jobs.

When asked, a Paytm spokesperson downplayed the reports, saying they’re just doing their regular performance reviews. They mentioned that these reviews might lead to changes in job roles based on how well people are doing. They also talked about how they’re using AI to make things more efficient, which could mean some roles might get affected.

According to the report, the way the company is handling these layoffs is pretty sketchy. They say HR is calling people one by one and giving them the bad news, with no mention of any severance packages. Instead, they’re putting people on a one-month performance improvement plan (PIP), which will probably end in them losing their jobs, followed by a 30-day notice period.

And this round of layoffs could be even bigger than the last one in December, where Paytm let go of about 1000 employees after rolling out some fancy AI tech. Some even say there were secret layoffs in January, completely unrelated to performance.

All this uncertainty is really weighing on Paytm’s workforce, especially with the RBI breathing down their necks. With the March 15 deadline looming, employees are on edge, wondering what’s going to happen next. Despite what the higher-ups are saying, many employees are already looking for other jobs, not wanting to stick around for the fallout.

As Paytm tries to sort things out with the regulators, their employees are left in limbo, hoping for some clarity and support during this rocky time.