Paytm is set to reduce its workforce as part of its annual appraisal cycle, according to a Moneycontrol exclusive report. The company has initiated a downsizing process about 2 weeks ago, asking some departments to cut their team sizes by up to 20%. This move comes amid wider challenges for the firm, including a looming business halt. Specifically, Paytm's banking unit, which employed 2,775 staff members as of December 2023 according to Tracxn data, is expected to let go of approximately 20% of its workforce. The layoffs are reportedly linked to an upcoming RBI ban deadline, suggesting regulatory pressures might be influencing the company's decision.