The parent company of Paytm - One97 Communications - announced on June 10 that it would be letting go of an undisclosed number of employees. This move would be carried out as part of a restructuring plan as initiated by CEO Vijay Shekhar Sharma last month (May).
Furthermore, to assist affected employees in their transition, the company stated it will provide outplacement support.
Sharma indicated that the firm would focus on its core businesses and enhance cost efficiencies In a letter to shareholders on May 22. This suggests potential layoffs that would be carried out.
Additionally, Sharma has also mentioned that employee costs have increased significantly. This is due to the investments in technology and financial services.
The company aims to reduce employee costs while the needed investments will continue. This is expected to potentially help One97 Communications save INR 400-500 crore annually.
And finally, due to the Reserve Bank of India's ban on Paytm Payments Bank services primarily, the sales employee headcount for the fintech firm fell by about 3,500 to 36,521 in the March 2024 quarter.
