Paytm will lay off 20% of its employees: There will be layoffs in different departments under the Annual Performance Review, AI will also be responsible

Paytm’s parent company ‘One 97 Communications Limited’ is preparing to fire about 20% of its employees. Recently the company had fired 1000 employees for cost cutting. Moneycontrol has given this information quoting sources.

According to the report, the company is going to do this layoff in different departments under the annual performance review. Apart from this, Paytm is also doing AI-powered automation exercises. Due to this also jobs may be cut.

RBI bans Paytm Payments Bank

Paytm is already facing action from the Reserve Bank of India (RBI) due to violation of regulatory rules and various other irregularities. Under this action, many restrictions have been imposed on Paytm Payment Bank, the deadline for which is March 15.

Order to restructure the team

According to the report, there is an order from the management to restructure the teams by reducing the number of employees in many functions. The company is not offering severance package. Rather, some selected candidates are being put on a one-month Performance Improvement Plan (PIP) starting in March, which will potentially lead to their termination.

Paytm spokesperson said – this process is different from layoff

Paytm spokesperson said, ‘We are in the process of our annual appraisal cycle, which is a normal practice in companies. This may include evaluation of performance along with our growth and cost-efficiency goals and adjustments may be made based on role suitability. It is important to understand that this process is different from retrenchment.