Paytm’s sales workforce declined by nearly 3,500 quarter-on-quarter to 36,521 in the March 2024 quarter. The main reason for the reduction in the number of employees is the action taken by the RBI. The Reserve Bank of India had banned the services of Paytm Payments Bank.

One97 Communications Ltd (OCL) is helping in outplacement of employees who have resigned as part of the company’s restructuring efforts.

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The company said that the company’s human resources teams are actively collaborating with more than 30 companies. However, Paytm did not disclose the number of employees affected by the restructuring.

Paytm is also offering bonuses to employees to ensure fairness and transparency in the process, according to a company statement.

RBI action

The Reserve Bank of India (RBI) had barred Paytm’s affiliate Paytm Payments Bank Limited (PPBL) from accepting deposits, credit transactions or top-ups in any customer account, wallet and Fastag, keeping in mind the interest of the customers. RBI had imposed a ban on Paytm Payments Bank Limited from March 15, 2024.

After RBI’s action, Paytm informed that the loss has increased to Rs 550 crore in January-March 2024. A year ago in the same period, the company had suffered a loss of Rs 167.5 crore.

Paytm said in its statement

It will cut its non-core business lines in its FY24 earnings release, and continue its efforts to maintain a lean organisation structure through AI-led interventions. The company is actively working towards increasing profitability.

Today Paytm shares are trading at Rs 396.20 per share with a rise of 3 percent.

The post Paytm To Layoff Employees Amidst Business Restructuring first appeared on Rightsofemployees.com.

Tech company One97 Communications, which runs the Paytm brand, may lay off around 5,000-6,300 employees in the coming days. The company is preparing to reduce employee costs. It is being said that Paytm may have to reduce its workforce by about 15-20% this financial year. According to a report by Financial Express, the company had an average of 32,798 employees working in FY23. Of these, 29,503 were active employees. The company’s average cost per employee was Rs 7.87 lakh. Total costs have increased 34% year-on-year (y-o-y) to Rs 3,124 crore in FY24 and the average cost of employees is expected to increase to Rs 10.6 lakh.

Process is already running

According to the news, the process of reducing the number of employees is already underway. In December, the company reportedly fired more than 1,000 employees from different departments. The number of employees in FY 2024 has not been announced. The company said in its investor presentation that in recent years, our employee costs have increased due to investments in technology, merchant sales and financial services.

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The company’s financial results are affected

One97 Communications’ net loss widened to Rs 550 crore in the January-March quarter from Rs 168 crore a year ago, driven by a drop in its revenue. Revenue from operations fell 3% year-on-year to Rs 2,267 crore in the March quarter. The company believes that optimising cost structure, leveraging AI capabilities and focusing on core business will help achieve significant cost efficiencies.

Trouble for Paytm began on January 31, when the Reserve Bank of India (RBI) restricted Paytm Payments Bank from accepting additional deposits and top-ups and making credit transactions to customer accounts, among other restrictions. The RBI restrictions on the payments bank badly impacted its fourth quarter results. The company is now making vigorous preparations to prepare itself.

The post Layoffs: Paytm may lay off 5,000-6,300 employees, know the reason here first appeared on Rightsofemployees.com.