PPBL to Further Downsize Workforce During Annual Appraisal Cycle; stock slips ~2%

14 Mar 2024 , 10:57 AM

One 97 Communications, Paytm’s parent company, plans to let off additional staff across divisions as part of its annual performance assessment, according to at least four people familiar with the matter.

This comes as the Reserve Bank of India (RBI) has criticised Paytm’s Payment Bank for breaches in due diligence.

“We are amidst our yearly appraisal cycle, which is a normal process in many firms, and performance assessments may result in revisions based on performance evaluations and position fit. It is critical to understand that this process is separate from layoffs, which are a common part of performance reviews in any organisation,” the sources stated.

Furthermore, the business stated that they are continuing to integrate AI-powered automation into their processes, which may influence specific positions.

“Management has issued directives to reorganise teams by lowering manpower across departments. People are being phoned one by one by HR to advise them of the layoff,” stated an employee who asked to remain anonymous.

He said that instead of giving a severance payout, the corporation is placing chosen individuals on a one-month performance improvement plan (PIP) beginning in March, which would most likely result in termination. This will be followed by a 30-day notice period.

Another source stated that this round might be more important than the previous round in December when the business laid off 1000 people following the installation of AI technology to improve productivity.

At around 10.47 AM, Paytm was trading 1.67% lower at ₹345.30, against the previous close of ₹350.95 on NSE. The counter touched an intraday high and low of ₹350.75, and ₹334.25, respectively.

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