Paytm COO Quits! Is the COO Position Becoming Redundant?

What’s happening with Paytm COO?

In regulatory filing on May 4, digital payments & financial services company Paytm announced resignation of Bhavesh Gupta, its president & COO. As to document, Gupt announced in letter that his resignation would take effect on May 31 at latest, at closing of work hours. Nonetheless, he stated that he intended to be involved with business as advisor in CEO's office.

Gupta acknowledged strong leadership in payments & financial services that Paytm has achieved over past few years & gave personal reasons for taking career break. She also expressed confidence in company's future trajectory. Company has accepted his resignation, & as of May 31, 2024, at end of business hours, he will no longer be employed by Company.

Paytm also announced Varun Sridhar's appointment as CEO of Paytm Services Pvt Limited & Gupta's transfer to advisory role. Rakesh Singh was also welcomed by company as Paytm Money's CEO. 

Paytm posted on X, saying, "We're thrilled to announce leadership changes as we step up our payments & financial services offerings even more. In order to improve succession planning, Varun Sridhar takes over as CEO of Paytm Services Pvt Ltd, & Bhavesh Gupt moves into advising role. Greetings & salutations to Rakesh Singh, our new Paytm Money CEO!"

Also Read: Paytm’s Made Loss Severity

Changing Role of COO: Redundant or Reimagined?

In recent years, several major companies, including Tata Consultancy Services (TCS) & Infosys, have opted to forego appointing Chief Operating Officers (COOs), raising questions about relevance of this executive position. While some view this trend as indicative of COO role becoming redundant, others argue that it is part of broader evolution in organizational structures & leadership roles.

TCS & Infosys: Scrapping COO Position

TCS made headlines when it announced retirement of its COO, N Ganapathy Subramaniam, without appointing successor. This move echoed Infosys' decision to eliminate COO position following retirement of UB Pravin Rao. Instead of filling these vacancies, both companies redistributed responsibilities to existing leadership teams, signalling shift away from traditional hierarchical structures.

Also Read: Is Paytm Still Worth Investing?

Reassessment of Organizational Structures 

Evolving landscape of business operations has led to reassessment of COO's role in many organizations. Aditya Narayan Mishra, Managing Director of CIEL FIR, emphasizes growing emphasis on flat & nimble organizational structures to facilitate faster decision-making & greater agility. This shift is reflected in creation of specialized CXO roles, such as Chief Information Security Officer (CISO), Chief Data Officer (CDO), & Chief Innovation Officer (CIO), among others.

Merger with CEO Position & Strategic Focus 

In some cases, COO's responsibilities have been merged with or elevated to CEO position as part of strategic realignment. Rajesh P, Vice President of HR at CavinKare, highlights trend of empowering CEOs with analytics & management dashboards, enabling them to gain deeper insights into business operations. This move towards flatter organizational structures aims to streamline decision-making processes & eliminate multiple layers of hierarchy.

Industry-Specific Considerations

While COO position may be losing prominence in certain sectors, it remains integral in others, particularly healthcare & telecommunications. Companies like Fortis Healthcare & Max Healthcare Institute emphasize importance of COO role in managing day-to-day operations efficiently. Similarly, telecom giants like Reliance Jio, Bharti Airtel, & Vodafone Idea rely on COOs to oversee dispersed business operations across diverse geographic regions.

Future of COO Position

Future of COO position appears to be nuanced, with its relevance varying depending on industry dynamics & organizational needs. While some companies may opt to discontinue COO role in favour of flatter structures & specialized CXO positions, others may continue to value COO's operational expertise & leadership. Ultimately, fate of COO position will be shaped by ongoing shifts in organizational strategies & industry trends.