Paytm Payments Bank Layoffs: Crisis-Hit Payment Giant Likely To Cut 20% Jobs

Paytm Payments Bank Layoffs: In the world of digital payments in India, Paytm is a big name. But things are changing. Reports say that Paytm might be letting go of some of its employees as part of their yearly check-up. At the same time, the government has put some rules on Paytm's bank.

Reportedly, Paytm's parent company, One 97 Communications, is in the process of implementing significant workforce reductions across multiple departments as part of its annual performance review. This strategic move comes amidst recent regulatory developments, notably the Reserve Bank of India (RBI) imposing restrictions on Paytm's Payment Bank. These restrictions prohibit the Payment Bank from conducting various business operations, leading to a ripple effect across the entire organisation.

Facing Changes: Paytm Payments Bank's Workforce Reduction

Recent reports tell us that Paytm's parent company, One 97 Communications, might be reducing its workforce during its yearly performance checks. We're not sure how many people will be affected, but it seems like some teams might get smaller by up to 20 percent.

The process started a couple of weeks ago, and it's got people worried. PPB says they're just checking everyone's performance, but some employees fear they might lose their jobs.

Employee Worries and Guesses

Employee | Photo: Unsplash

Despite what the company says, employees are worried about the changes happening in the company. They say that some employees who are affected are put on a plan for one month to get better at their jobs. But after that, they might lose their jobs without getting any extra money.

Some people think that this time, more people might lose their jobs compared to when 1,000 people were let go in December 2023 after the company started using AI. Another worker said that in January 2024, some people lost their jobs quietly, and it wasn't because they weren't doing well at work.

Because of all this uncertainty, employees are looking for other jobs. There are more than 5,000 job openings outside of PPB, according to a report.

People are also talking about how many jobs might go this time. It seems like there were fewer job losses in December 2023 compared to what's expected now. Some even say that earlier this year, people lost their jobs without anyone knowing.

Company's Reaction and Plans

Paytm says they're trying to work smarter by using more technology. They want to change some roles to make things work better and save money. Even though things are tough, Paytm's boss says they're still committed to keeping their employees safe.

¡°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 said.

He also added, ¡°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.¡±

During a virtual town hall with employees on February 5, Paytm's founder Vijay Shekhar Sharma promised that their jobs are safe, even though there are some problems with rules and changes happening inside the company.

As PPB goes through changes both inside and out, the talk of layoffs shows how things are shifting. While the company tries to be efficient, it's important not to forget about the people affected by these changes. We'll have to see how Paytm balances making things better with taking care of its employees.

Why is Paytm Payments Bank Closing?

Paytm | Photo: BCCL

The Reserve Bank of India (RBI) has ordered Paytm Payments Bank to stop its services like accepting deposits and handling credit transactions from March 15. This decision came after the RBI found serious rule violations in the bank's operations. Thousands of accounts were opened without proper identification, raising concerns about possible involvement in illegal activities like money laundering.

Impact of the Closure

Deposits and Transactions: After March 15, customers won't be able to deposit money into their Paytm Payments Bank accounts. However, they can still withdraw or transfer funds.

Income and Subsidies: Services like salary credit, direct benefit transfers, or subsidies won't be available in Paytm Payments Bank accounts. Yet, refunds, cashbacks, and sweep-ins from partner banks will continue.

Wallet Transactions: Customers won't have facilities like top-ups or money transfers in their wallets anymore. But they can still make payments if there's money in their accounts.

FASTag and NCMC: Recharging FASTag or NCMC cards issued by Paytm Payments Bank won't be possible post-closure.

Money Transfers: After March 15, customers can't transfer money into Paytm Payments Bank accounts through UPI or IMPS.

The closure of Paytm Payments Bank is aimed at addressing compliance issues and ensuring transparency in banking operations.