Paytm
layoffs:
One97 Communications
Limited, the parent company of Paytm, is currently undergoing a restructuring process that involves an undisclosed number of people being laid off.
According to a PTI report quoting the company statement, Paytm is providing outplacement support to these employees, collaborating with over 30 companies that are currently hiring and assisting those who have chosen to share their information to facilitate their immediate outplacement.
In a statement released on Monday, the company said, “One97 Communications Limited (OCL) is providing outplacement support to employees which have resigned as a part of the restructuring efforts by the company.”
Paytm also claimed that it is ensuring fairness and transparency in the process by disbursing bonuses that were due to employees.
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Paytm’s sales employee headcount in the March 2024 quarter decreased by approximately 3,500 to 36,521 personnel compared to the previous quarter, primarily due to the impact of the
Reserve Bank of India
‘s ban on Paytm Payments Bank services.
The restructuring efforts come in the wake of the Reserve Bank of India’s (RBI) ban on Paytm Payments Bank Limited (PPBL), an associate of Paytm, from accepting deposits, credit transactions, or top-ups in any customer accounts, wallets, and FASTags, effective from March 15 onwards. This decision was made by the RBI to protect the interests of customers, including merchants.
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As a result of the ban, Paytm reported a widening of its loss to Rs 550 crore in the January-March 2024 quarter, compared to a loss of Rs 167.5 crore in the same period a year ago.
The company stated that it will continue to prune its non-core business lines and maintain a leaner organization structure through AI-led interventions as part of its efforts to drive profitability, in line with its guidance for the fiscal year 2024.
