Anindita Nayak
Bhubaneswar, 10 June 2024
Fintech major, Paytm on Monday said that the company is laying off employees as part of its restructuring plan announced by CEO Vijay Shekhar Sharma in May as the company initiates efforts to reduce manpower costs. It, however, didn’t specify the number of staffers that would be affected by this move.
The fintech firm said that it would provide outplacement support to those affected employees, for their smooth transition, according to a statement issued by the firm. One97 Communications Limited (OCL) is providing outplacement support to employees which have resigned as a part of the restructuring efforts by the company, it said in a statement. It, further, added that the company’s human resource teams are actively coordinating with over 30 firms that are currently hiring, and providing assistance to employees who have opted to share their information, facilitating their immediate outplacement. Paytm is also disbursing bonuses that were due to employees, ensuring fairness and transparency in the process,” the statement said.
In a letter to shareholders dated May 22, the CEO of Paytm had said that the company would concentrate on its main operations and streamline costs to become more efficient, suggesting potential layoffs. He has mentioned that the company’s spending on employee expenses had grown due to investments in technology and financial services. Although investments would continue, steps would be taken to reduce employee costs, with estimated savings of Rs 400-500 crore per year, he has outlined.
In the March 2024 quarter, the number of sales employees at the fintech company decreased by approximately 3,500 compared to the previous quarter, bringing the total to 36,521 employees. This drop was primarily caused by the Reserve Bank of India’s prohibition on certain services provided by Paytm Payments Bank. In March this year, the Reserve Bank of India (RBI) prohibited Paytm Payments Bank Limited (PPBL), an affiliate of Paytm, from accepting deposits, credits, or top-ups in any customer accounts, wallets, and FASTags.
