Paytm announces job cuts amid restructuring efforts

One97 Communications, the parent company of Paytm, confirmed layoffs affecting an undisclosed number of employees on June 10. According to PTI, the fintech firm is providing outplacement support to aid a smooth transition for those impacted. The Paytm sales division saw a significant reduction of approximately 3,500 employees, bringing the total headcount down to 36,521 as of the March 2024 quarter. This decline is largely due to the Reserve Bank of India's (RBI) ban on services offered by Paytm Payments Bank.

"One97 Communications Limited (OCL) is offering outplacement support to employees who have resigned as part of the company's restructuring efforts," the company stated. Paytm's HR teams are collaborating with over 30 companies currently hiring, assisting employees who have opted to share their information for immediate job placement.

Additionally, Paytm is disbursing bonuses owed to employees, ensuring fairness and transparency throughout the process.

The RBI's ban, effective from March 15, prohibits Paytm Payments Bank Limited (PPBL), an associate of Paytm, from accepting deposits, credit transactions, or top-ups in any customer accounts, wallets, and FASTags due to non-compliance and supervisory concerns. As a result, Paytm reported a widened loss of ₹550 crore for the January-March 2024 period, up from a loss of ₹167.5 crore in the same period the previous year.

In its FY24 earnings release, One97 Communications announced plans to trim non-core business lines and maintain a leaner organizational structure through AI-led interventions. The company remains focused on driving profitability, aligning with its strategic guidance.