One 97 Communications, Paytm's parent company, is reportedly all set to conduct another round of layoffs across various departments as part of its annual performance evaluation, according to a report by Moneycontrol citing sources. This move coincides with heightened scrutiny from the Reserve Bank of India (RBI) over lapses in due diligence by Paytm Payment banks.
Although the exact number of employees affected remains undisclosed, the report suggests that certain departments have been tasked with downsizing their teams by up to 20 per cent. The restructuring process commenced two weeks ago, as per the report.
A spokesperson from Paytm challenged the reported layoff percentage in the report but refrained from providing a specific number. Instead, the person indicated that the company is currently undergoing its annual performance evaluation process, which could result in job cuts based on performance. Additionally, they highlighted that this is part of a broader AI-driven automation initiative that may affect certain roles, as per the report.
“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 organisation,” the spokesperson told Moneycontrol.
Moreover, the company emphasised its ongoing efforts to integrate AI-driven automation into its operations, suggesting that this could potentially have additional effects on specific roles.
"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.
According to an employee in the report, management has issued directives to restructure teams by decreasing headcount across functions. HR is individually contacting employees to inform them about the layoffs. In addition, the employee claims in the report that instead of providing a severance package, the company is placing selected individuals on a one-month Performance Improvement Plan commencing in March, likely to result in termination. This will be succeeded by a 30-day notice period.