Paytm: Job cuts spark employee outrage, company denies any ‘coercion’

Troubles for Paytm continue to escalate. After regulatory crackdown on its banking unit, employees have now put the company on the hot seat.These are employees that were let go in Paytm's recent restructuring drive.

Employees are alleging forced resignations without any prior notice. Several employees claim that no severance pay was given, along with no official communication regarding restructuring.

Moreover, many have voiced concerns over company asking for joining & retention bonuses as well.

These allegations do not sit well with Paytm, a digital payments pioneer already embroidered in multiple crisis following RBI’s crackdown on its banking unit.

Commenting on the same, the company replied ‘We strongly deny allegations pertaining to any forced action on employees or unfair treatment. We have rigorously ensured that our HR teams have informed employees about their termination through official channels only. Further, we would also emphasise that all transitions are duly undertaken as per norms laid out in the appointment letter of these employees. To help them adjust and plan their next move, we are honoring full notice periods of these employees while also extending additional support such as outplacement, and processing of due bonuses at the time of their full and final settlements. Our focus remains on building a leaner organization that is well-positioned to deliver long-term sustainable growth and value to our stakeholders. We remain committed to supporting our employees during this transition.’

Several employees had resigned in the past few months.But for many who were still with the company, they expected a fair exit process. Many have formed WhatsApp groups to decide on the next course of action.

These recent allegations have dented the company’s image as it looks to bounce back & gain customer trust.The company recently partnered with Samsung to integrate travel & entertainment services. This propelled company’s stock by 6 per cent. However, thestock is still down 57 per cent from its 52-week high.

Paytm needs employee backing at this stage now more than ever. With new partnerships & revival plans on the horizon, the company would be looking to address these grievances as soon as possible.