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Paytm Implements Layoffs In Restructuring

By Nithya Bose in Business News, posted June 10, 2024

Fintech company One97 Communications, the parent company of Paytm, has announced a series of layoffs as part of its restructuring efforts.

While the exact number of affected employees was not disclosed, the company assured that it provides outplacement support to ease the transition for those impacted.

In the March 2024 quarter, Paytm's sales headcount decreased by approximately 3,500, bringing the total down to 36,521.

This reduction is primarily due to the Reserve Bank of India's (RBI) ban on Paytm Payments Bank's services.

The company said: "One97 Communications Limited (OCL) is actively supporting resigned employees as part of the restructuring process.

“Our human resource teams are working closely with over 30 companies that are currently hiring, offering assistance to employees who have chosen to share their information, thus facilitating immediate outplacement.”

Despite the measures taken, Paytm has not revealed the exact number of employees affected by the restructuring.

However, the company emphasised its commitment to fairness by ensuring that bonuses due to employees are being disbursed.

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The restructuring follows the RBI's decision to prohibit Paytm Payments Bank Limited (PPBL) from accepting deposits, credit transactions, or top-ups in customer accounts, wallets, and FASTags.

It started on March 15 to protect customer interests, including those of merchants.

The financial impact of the RBI ban has been significant.

Paytm reported a widened loss of Rs 550 crore for the January-March 2024, compared to Rs 167.5 crore in the same quarter the previous year.

In its FY24 earnings release, One97 Communications highlighted its strategy to focus on core business areas and streamline operations through AI-driven initiatives.

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