Patym hands pink slip to employees as part of ‘restructuring’
One97 Communications, Paytm’s parent company, confirmed the dismissal of an unspecified number of employees on June 10. According to PTI, the company is offering outplacement services to help people affected transfer smoothly.
According to the statement, the number of employees at Paytm’s sales division decreased by about 3,500, bringing the total headcount to 36,521 in the March 2024 quarter. This reduction is mostly due to the RBI’s (RBI) prohibition on Paytm Payments Bank services.
“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.
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Paytm’s HR staff are apparently working with around 30 organizations that are now hiring, aiding employees who have elected to provide their details for immediate outplacement.
“Paytm is also disbursing bonuses which were due to employees, ensuring fairness and transparency in the process,” the statement added.
RBI’s ban on Paytm Payments Bank services
The RBI prohibited Paytm Payments Bank Limited (PPBL), a Paytm subsidiary, from receiving deposits, credit transactions, or top-ups in any client accounts, wallets, or FASTags beginning March 15, citing non-compliance issues and supervisory concerns.
Paytm claimed a loss of ₹550 crore in January-March 2024, up from ₹167.5 crore the previous year, due to this ban.
“One97 Communications indicated in its FY24 earnings announcement that it will prune its non-core business lines and will continue to work towards a smaller organizational structure using AI-led interventions. The company has been actively working to drive profitability, in accordance with its forecast,” the company stated.
