Paytm Layoff

Reserve Bank of India (RBI) has recently barred Fintech firm Paytm from accepting deposits, credit and wallet related transactions due to non-compliance issues. In such a scenario, automatically the number of employees needed have reduced. Now, the question sustains on how these terminated employees would survive? Is there any foul play in this “restructuring” as One 97 communications calls it? Or is there a solid back up plan for outplaced employees? Let us review.

1. It is estimated that approximately 3,500 sales employees are asked to leave by the company.
2. The company said “Paytm is also disbursing bonuses which were due to employees, ensuring fairness and transparency in the process.” Of course, the company has reported a loss of Rs. 550 crore after ban was imposed on Paytm Payments bank.
3. In such an uncertain situation, employees are stuck with no job at all. However, in company’s view, they are assisting employees in finding new jobs and providing bonus also. However, only an employee working at ground level can feel what is actually happening.
4. The heartwarming statement of one of the employee shows the grave condition.  He said “I started crying at the meeting. I told them I was willing to work even at a lower salary and designation.” This unfortunate and immediate job cut would make anyone vulnerable. There are EMIs, bills to be paid, a family to take care of.
5. In the midst of all this, few employees are also blaming the company that the latter is asking them to forcefully resign rather than out rightly terminating them. Needless to say, if this is true, then the company is actually trying to wash their hands off without taking any responsibility.

According to CMIE’s Pyramids Household Survey, India’s unemployment rate increased to 8% in February, 2024. This lay off by such a big organization would eventually add to overburdening of service sector. Therefore, the real question is-  whether the company is actually doing anything for its existing employees? Or is it simply trying to disguise them?