A Paytm spokesperson did not specify a number but said that the company is in the mid of an annual appraisal cycle, which can lead to performance-based job cuts.
The parent company of Paytm, One 97 Communications, will cut more jobs across departments as part of its annual performance review, reported Money Control. This comes after RBI barred Paytm Payments Bank from conducting several business from March 15.
However Moneycontrol could not ascertain the number of people to be laid off, the report claims that some of the departments have been asked to reduce their team size by 20%.
Paytm Spokesperson On Layoffs
This exercise has already started two weeks ago. A Paytm spokesperson did not specify a number but said that the company is in the mid of an annual appraisal cycle, which can lead to performance-based job cuts. He also claimed that this is part of a larger AI-powered automation exercise which may impact some roles.
Paytm Spokesperson On AI-Powered Automation
The company is also trying to implement AI backed automation as stated by spokesperson that it will continue to transform its operations with AI-powered automation to drive efficiency. He added, “”This involves redefining certain roles and tasks to better align with our growth and cost-efficiency goals.”
“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 said in a statement, reported Moneycontrol.
SBI Partners With Paytm
The State Bank of India has partnered with Paytm parent organization One97 Communications for its consumer UPI operations. Paytm’s UPI was dependent on Paytm Payments Bank Limited (PPBL), as the Reserve Bank of India barred various operations of the Paytm payments bank, One97 Communications is entering into partnerships with various banks to become a third-party application provider (TPAP).
Earlier, Paytm had entered into partnership for its UPI tranactions with Axis Bank, Yes Bank and HDFC Bank for third-party application provider (TPAP) partnerships.
The National Payments Corp of India (NPCI) is also likely to approve a third-party application provider (TPAP) license for Paytm, which is officially known as One 97 Communications, by March 15, states Reuters report.