'I started crying at the meeting...': Ex-Paytm employee on being laid-off

In the wake of a crisis triggered by the Reserve Bank of India's (RBI) decision to restrict several business operations of Paytm Payments Bank, Paytm has initiated a series of layoffs affecting many employees.

According to a report by the Times of India, some employees are being pressured to "voluntarily resign" without prior notice. In contrast, others are being asked to reimburse their joining and retention bonuses to the company.

A laid-off Paytm employee reportedly expressed distress over the sudden developments with the outlet, “I started crying at the meeting. I told them that I was willing to work even at a lower salary and designation.” The employee recounted how HR executives informed him last month that his role would be eliminated as part of an organisational restructuring.

Another affected employee highlighted the lack of formal documentation in the termination process, “The calls with HRs are being labelled as 'connect' or 'discussion'. There is no formal documentation of any kind,” he reportedly said. Business Today wasn't able to verify these claims independently. 

Furthermore, some employees have been instructed to repay their retention bonuses, which were indicated as "recoverable" in their offer letters if they departed from the company within 18 months of joining.

In response to the allegations, Paytm refuted any claims of forced actions against employees or unfair treatment. The company stated, “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."

It further said, "To help them adjust and plan their next move, we honour these employees' full notice periods 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 organisation 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.”