One97 Communications Limited, the parent company of Paytm, has announced layoffs as part of its ongoing restructuring efforts. The exact number of employees affected has not been disclosed.
In a statement, the company emphasized its commitment to supporting the transitioning employees by providing outplacement support.
Human resource teams at One97 Communications are collaborating with over 30 companies currently hiring, to facilitate immediate outplacement for employees who have opted to share their information.
Additionally, the company assured that all pending bonuses would be disbursed to the affected employees, maintaining fairness and transparency throughout the process.
This development follows a significant reduction in Paytm’s sales employee headcount by about 3,500 to 36,521 personnel in the March 2024 quarter, attributed to the Reserve Bank of India’s (RBI) ban on several services of Paytm Payments Bank.
The ban restricts the associate from accepting deposits, credit transactions, or top-ups in customer accounts, wallets, and FASTags.
Despite these challenges, Paytm’s share price saw a significant rise of over the last few weeks.
However, the company reported a loss of ₹550 crore in Q4, compared to a loss of ₹167.5 crore in the same period the previous year.
As part of its FY24 earnings release, One97 Communications stated its intention to prune non-core business lines and maintain a leaner organizational structure through AI-led interventions.
The company remains focused on driving profitability, aligning with its financial guidance.
