Paytm to lay off about 500 employees after a performance review
According to sources, the company decision could impact about 500-700 employees.
The company also announced that it will offer ₹250Cr in employee stock option plans (ESOPs) this year to its high performing employees and new hires.
Paytm said this will widen the base of employees having company shares and will enable more people to become a stakeholder in Paytm’s growth story.
However, owing to the current crisis, Paytm said that it will retain these employees on their payroll for another two months and ensure that they receive all payments for this extended period.
“Every year after taking into account the performance of each employee, we usually find that 5% to10% of our employee base is at the lower end of the bell curve. In such cases, we ask the employees to look for opportunities outside Paytm. This year we have found 500-700 employees have underperformed by our performance metrics and we will be retaining them for 2 months until they find better opportunities considering current times,” Paytm said to media outlets.
The company is also planning to hire over 500 people for multiple roles under its financial services categories, besides hiring in product and technology.
“Paytm has a high-performance culture and follows a transparent process to evaluate and reward employees. We always ensure to provide ample growth opportunities and engage for feedback from time to time,” said Rohit Thakur, Chief Human Resources Officer, Paytm.
Paytm is not the only company who is planning for mass layoffs. Recently, foodtech delivery unicorn Swiggy also announced that it is planning to layoff about 900 employees.