Paytm trims workforce, more layoffsmay follow

MUMBAI: Paytm is pruning its workforce as part of its strategy to check costs and create a leaner organisation.
Several employees across departments have been laid off while many have quit their jobs at the firm in the past 3-4 months, following RBI’s move to impose restrictions on its banking unit, sources said. The fintech has also been increasing its reliance on artificial intelligence to streamline work processes and build in more efficiencies, making some job roles redundant in the process.
“The operations of Paytm Payments Bank (PPBL) and Paytm were interdependent at several levels. It was not possible for the company to absorb everyone from PPBL. As part of the firm’s move to control costs, all departments have been asked to reduce their budgets,” said company sources. Paytm did not disclose the number of people that have been laid off and in a statement on Monday said that there have been no new layoffs. Sources, however, did not rule out the possibility of more layoffs in the coming months.
A former PPBL employee who recently moved to another fintech said that several Paytm employees were handed pink slips in the last week of May. “Two of my friends who had moved from PPBL to the parent company got laid off. They have reached out for job referrals,” the employee said. The two affected employees could not be reached immediately. Another former employee who was terminated from the company in April said that the firm never furnished any set reason behind his abrupt termination.