Paytm Payments Bank To Cut 20% Workforce
Amidst uncertainty surrounding its future, Indian digital payments giant Paytm is considering a significant reduction in its banking unit's workforce, potentially affecting nearly 20 per cent of its employees.
Reports from Business Standard indicate that Paytm Payments Bank is planning layoffs across specific divisions, particularly operations. Tracxn data from December 2023 shows that the unit currently employs 2,775 individuals.
Paytm holds a 49 per cent stake in the bank. However, the Reserve Bank of India (RBI) recently ordered the bank to halt credit transactions and deposits by 15 March due to compliance breaches, causing Paytm shares to plummet by 54 per cent.
According to sources within the company, the ongoing appraisal season has led to employees with low ratings being asked to leave. Despite earlier assurances from CEO Vijay Shekhar Sharma during an internal meeting that there would be no layoffs, employees feel frustrated with the management's decision.
While the annual appraisal cycle continues, adjustments based on performance evaluations may lead to role changes, separate from the potential layoffs.
