Paytm is in the process of downsizing its workforce and is going to lay off over 500 employees across mid and junior levels, according to a report by Entrackr.
The layoffs at the Noida-based firm will mainly affect four verticals viz. KYC, O2O, retail and transportation teams, the report claims.
Several state heads, including junior managers and team leads, were asked to resign abruptly with the firm offering two-month severance packages to those who are being fired, two sources told Entrackr on condition of anonymity.
Sources have reportedly confirmed that job cuts are taking place across the country with Maharashtra, Gujarat, Rajasthan, Madhya Pradesh and a few southern states bearing the brunt of the layoffs.
The layoffs are reportedly happening as part of cost-cutting measures.
Meanwhile, a Paytm spokesperson said that joining and leaving an organisation is a part of the normal process. We have a well-structured system to assist our colleagues in their journey with Paytm. Performance is also evaluated from time to time based on which certain decisions may be taken.
Our immediate bosses called up saying that something isn’t right and within hours, the human resource department called up and asked us to resign, a few of the people who have been affected by the layoffs, reportedly said.
Entrackr has reportedly viewed a letter where many employees who had recently joined the organisation have been asked to leave immediately. Further, the employees have been asked to submit their software access, passcodes and other assets to the company.
This development comes just days after Paytm raised $1 billion in a fresh round of fund-raising led by T Rowe Price Associates Inc, Discovery Capital and existing marque investors, SoftBank and Alibaba. The investment was made into One97 Communications Limited, the parent company that owns Paytm.