One97 Communications Limited, the parent company of Paytm, has initiated a restructuring process resulting in an undisclosed number of layoffs.
According to a company statement quoted by PTI, Paytm is offering outplacement support to affected employees, partnering with over 30 companies that are actively hiring to facilitate immediate job placement for those who have opted to share their information.
“One97 Communications Limited (OCL) is providing outplacement support to employees who have resigned as part of the restructuring efforts by the company,” the statement released on Monday said. Paytm emphasized its commitment to fairness and transparency in the process by ensuring the disbursement of due bonuses to employees.
In the March 2024 quarter, Paytm‘s sales employee headcount decreased by approximately 3,500, bringing the total to 36,521 personnel compared to the previous quarter. This reduction is primarily attributed to the impact of the Reserve Bank of India’s (RBI) ban on Paytm Payments Bank Limited (PPBL).
The restructuring follows the RBI’s decision to ban PPBL, an associate of Paytm, from accepting deposits, credit transactions, or top-ups in any customer accounts, wallets, and FASTags, effective from March 15. The RBI’s decision aimed to protect the interests of customers, including merchants.
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 the previous year.
The company has stated its intention to continue pruning non-core business lines and maintaining a leaner organizational structure through AI-led interventions. These efforts align with Paytm’s guidance for the fiscal year 2024, focusing on driving profitability.
