As per the reports of Money Control, one of India’s largest digital payment apps, Paytm expects to reduce its workforce by approximately 20%. However, the exact number is still unknown.
The company’s current annual appraisal cycle could be driving these layoffs, with job cuts possibly being influenced by individual performance evaluations during this period.
The report also suggested that the spokesperson said, “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 added.
SightsIn Plus could not verify the claims of the report for layoffs. Yet, in February, the company’s founder Vijay Shekhar Sharma offered assurance to its employees, affirming that despite the recent crisis, there would be no layoffs.
Additionally, In February Paytm founder Vijay Shekhar Sharma also stepped down from his position as non-executive Chairman. He also resigned as a board member of Paytm Payments Bank Limited (PPBL) ahead of the March 15 deadline to wind down its business.
As on January 31, 2024, the Reserve Bank of India (RBI) issued notice to Paytm Payments Bank and restricted accepting fresh deposits and doing credit transactions after February 29.
Post this, no fund transfers will be allowed either, which means that unless Paytm finds a new banking partner or partners, it will not be able to offer most services on its app.
The decision comes after the central bank in March 2022 barred Paytm Payments Bank from onboarding new customers.
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