One97 Communications, the parent company of Paytm, is planning to reduce its workforce and provide outplacement support for an easy transition, it said via a statement on Monday. The fintech firm didn’t reveal how many employees it is letting go in the process.
According to a report by PTI, Paytm’s sales employee headcount in the January-March 2024 quarter slipped by nearly 3,500 to 36,521 individuals against the preceding quarter. This was labelled as an aftereffect of the ban from the Reserve Bank of India on the company’s banking unit services, Paytm Payments Bank.
The firm in an official statement revealed that it will provide outplacement support to the members of its workforce who have been affected in the restructuring process. “The company’s human resource teams are actively collaborating with over 30 companies that are currently hiring, and providing assistance to employees who have opted to share their information, facilitating their immediate outplacement,” the statement said.
The fintech firm is also distributing bonuses due to the affected employees to ensure ‘fairness and transparency’ in the whole process, it informed.
Notably, the banking unit of the company, Paytm Payments Bank Limited (PPBL), faced scrutiny recently when the central bank placed restrictions on the unit citing KYC violations. The RBI barred the entity from allowing deposits or credit transactions in customer accounts, wallets, and FASTags.
Also Read : Passenger Vehicle Sales Drop 1% In May Amid Heatwave, Two-Wheeler Sales Rise
As such, Paytm clocked a loss of Rs 550 crore in the last quarter of the 2023-24 fiscal year (FY24), feeling the impact of the ban. In the January-March quarter in the preceding 2022-23 fiscal year (FY23), the company logged a loss of Rs 167.5 crore.
In its earnings report for FY24, One97 Communications noted that it will be undertaking more efforts to slash its non-core businesses and maintain a leaner organisation structure with the help of AI.
