Paytm To Layoff Employees Amidst Business Restructuring

Fintech giant One97 Communications Ltd, which owns the Paytm brand, has initiated undisclosed employee layoffs while simultaneously offering outplacement assistance for their smooth transition, according to a statement.

During the March quarter, Paytm observed a reduction of approximately 3,500 sales employees, bringing the total count to 36,521 individuals, primarily due to the ramifications of the Reserve Bank of India's ban on Paytm Payments Bank services.

One97 Communications has affirmed its commitment to aiding resigned employees through outplacement support as part of the ongoing company restructuring.

In collaboration with more than 30 hiring entities, the company's HR teams are actively engaged in assisting employees who have opted to share their details, facilitating their immediate transition to new employment opportunities.

While the exact number of affected employees remains undisclosed, Paytm has ensured fairness and transparency by disbursing due bonuses to its workforce.

The RBI's directive, effective from March 15 onwards, prohibits Paytm Payments Bank Ltd from engaging in deposit acceptance, credit transactions, or top-ups across customer accounts, wallets, and FASTags.

Paytm's financial report for January-March 2024 reflects a widening loss of Rs 550 crore, attributed to the regulatory constraints imposed by the RBI on its payments bank operations, compared to a loss of Rs 167.5 crore during the same period last year.

In its 2023-24 earnings disclosure, One97 Communications announced plans to streamline non-core business operations and pursue a leaner organisational structure through AI-driven initiatives, aligning with its profitability objectives.

With PTI inputs.