New Delhi: According to sources cited by Moneycontrol, the parent company of Paytm, One 97 Communications, is poised to downsize its workforce across various departments as part of its annual performance review.
This decision comes amidst regulatory scrutiny by the Reserve Bank of India (RBI) on the fintech unicorn’s payment banks for compliance lapses.
Though the exact number of employees affected remains undisclosed, insiders revealed that over the past fortnight, certain departments have been instructed to reduce team sizes by up to 20 percent.
A spokesperson from Paytm acknowledged the possibility of performance-based layoffs during the ongoing appraisal cycle but refrained from disclosing specific figures. They emphasized that the company’s shift towards artificial intelligence-driven automation would impact more jobs than the performance review process.
The spokesperson clarified, “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, “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.”
The spokesperson insisted that these actions are not strictly classified as layoffs, emphasizing that appraisal and performance reviews are routine activities within the company.
On Wednesday, the National Highways Authority of India (NHAI) had issued an advisory urging Paytm FASTag users to transition to another bank’s FASTag by March 15.
According to a statement from the Ministry of Road Transport and Highways, the NHAI recommended that Paytm FASTag users switch to a new FASTag provided by a different bank before March 15, 2024.
This transition aims to ensure smooth travel experiences and prevent any inconvenience at toll plazas. Failure to migrate may result in penalties or additional charges when commuting on National Highways.
The statement further clarified that, in compliance with Reserve Bank of India (RBI) guidelines regarding limitations on Paytm Payments Bank, users of Paytm FASTags will be unable to recharge or top up their balances after March 15, 2024. However, they can continue to utilize their existing balance for toll payments beyond this date.
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