One97 Communications, a major player in the fintech industry and the parent company of Paytm, has announced that it will be laying off an undisclosed number of employees. The company is offering support to help affected employees transition smoothly.
Reports indicate that One97 Communications is working with more than 30 companies that are currently hiring, to assist employees who have expressed interest in finding new opportunities.
The company outlined its strategy in its FY24 earnings release, revealing plans to streamline operations by cutting non-core business lines and adopting a leaner organizational structure through AI-driven initiatives. One97 Communications remains focused on achieving profitability as per its guidance.
During the March 2024 quarter, Paytm’s sales employee headcount decreased by around 3,500 to 36,521. This reduction was primarily due to the Reserve Bank of India’s (RBI) ban on certain services provided by Paytm Payments Bank.
In a statement, One97 Communications emphasized its commitment to fairness and transparency, noting that it is distributing bonuses owed to employees. Despite the layoffs, the exact number of affected employees has not been disclosed.
The RBI had previously prohibited Paytm Payments Bank from accepting deposits, credit transactions, or top-ups in any customer accounts, wallets, and FASTags. This restriction has had a significant impact, leading to Paytm’s reported loss of Rs 550 crore in the January-March 2024 period, compared to a loss of Rs 167.5 crore in the same period the previous year.
Following the first-ever decline in sales last month, Paytm hinted at potential job cuts and plans to divest non-core assets. In a letter to shareholders on Wednesday, May 22, 2024, Vijay Shekhar Sharma, CEO of Paytm, announced the company’s focus on its core businesses and its plan to improve cost efficiencies to create a leaner organization.
