Paytm in restructuring mode, terminates more employees

Paytm in restructuring mode, terminates more employees

One97 Communications, the parent company of the fintech giant Paytm, has announced another reduction in its workforce as part of a company-wide restructuring plan. The exact number of employees affected by this exercise are not made public according to media reports and PTI.

The company has assured that it will provide outplacement support to ensure a smooth transition for those impacted. This move comes after CEO Vijay Shekhar Sharma’s announcement of the restructuring plan in May.

According to the statement, the number of employees at Paytm sales division dropped by approximately 3,500, bringing the total headcount to 36,521 in the March 2024 quarter. This decline is primarily attributed to the Reserve Bank of India’s (RBI) ban on services provided by Paytm Payments Bank.

Also read: The Den Bengaluru appoints Priyanka Rao as Head-HR

“One97 Communications Limited (OCL) is providing outplacement support to employees who have resigned as a part of the restructuring efforts by the company,” the company stated.

The HR teams at Paytm are reportedly working with over 30 companies that are currently hiring, assisting employees who have chosen to share their information for immediate outplacement.

“Paytm is also disbursing bonuses which were due to employees, ensuring fairness and transparency in the process,” the statement added..

“As part of its FY24 earnings release, One97 Communications stated that it will be pruning its non-core business lines and will continue its efforts to maintain a leaner organization structure through AI-led interventions. The company has been actively working towards driving profitability, in line with its guidance,” the company stated.

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