Mumbai: In the wake of recent regulatory actions by the Reserve Bank of India (RBI) against Paytm's payment banks, the company's parent entity, One97 Communications, is bracing for significant workforce reductions. Speculations about impending layoffs have surfaced, indicating a potentially tumultuous period for the renowned communications company.
The exact magnitude of the impending job cuts remains undisclosed, but reports suggest that several departments within Paytm have been directed to slash their workforce by up to 20 percent within a mere two-week timeframe.
The turmoil within Paytm's corridors comes amid the regulatory heat faced by the company, particularly following the RBI's ban on its payment banks. According to sources cited in a Moneycontrol report, the looming layoffs could be attributed to an annual performance appraisal cycle, with individuals from various departments potentially facing the axe.
Despite the mounting uncertainty, a spokesperson from Paytm downplayed the situation, emphasizing that the ongoing evaluation process might lead to workforce adjustments, albeit driven by performance metrics. Refusing to divulge specific figures, the spokesperson refrained from terming the workforce reductions as outright layoffs, asserting that such measures are commonplace across industries.
However, insights from within the company paint a different picture. Employees reveal directives from management to restructure teams and streamline operations, resulting in the imminent reduction of workforce. Human resources personnel are reportedly communicating these decisions to affected employees, adding to the palpable tension within the organization.
This isn't the first time Paytm has grappled with workforce downsizing. In 2023, One97 Communications had embarked on a cost-cutting spree, aiming to trim staff costs by 15 percent. The move resulted in the layoff of hundreds of employees across various divisions, impacting over 1,000 individuals, which constituted roughly ten percent of the company's workforce.
During the previous wave of layoffs, a company spokesperson cited the predominance of roles involving artificial intelligence (AI) among those affected, shedding light on the evolving dynamics within Paytm's operational landscape.
As the specter of layoffs looms large over Paytm once again, the fate of thousands of employees hangs in the balance, underscoring the challenges faced by the company amidst regulatory headwinds and internal restructuring efforts.
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