Paytm Layoffs: Fintech Major Lays Off Undisclosed Numbers of Employees as Part of Restructuring After RBI Ban, Promises Smoother Transition and Outplacement
Paytm-parent company One97 Communication Limited (OCL) has finally begun laying off its workforce amid restructuring exercise in its latest round. The fintech company has reportedly offered the affected employees outplacement and also disbursed due bonuses.
Mumbai, June 10: Paytm layoffs were expected to be announced soon after previously reports mentioned that the fintech giant might cut 5,000 to 6,300 employees in the current financial year. Paytm already let go of about 3,500 employees in its layoffs round in March, reportedly bringing the workforce headcount to 36,521, according to the reports.
In February 2024, Paytm faced RBI ban which affected its PPBL services. The users were directed not to put additional funds in the Paytm Payments Bank. Paytm CEO Vijay Shekhar Sharma had to leave PPBL's board amid these issues. After posting a net loss of Rs 550 crore, the Paytm CEO announced that the fintech company would focus more on AI capabilities and significant cost efficiencies, including a "leaner organisational structure. Paytm Layoffs 2024: Parent Company One97 Communications Limited Cuts Undisclosed Numbers of People Amid Restructuring, Facilitates Outplacement.
According to recent reports, Paytm-parent One97 Communications confirmed laying off an unspecified number of employees in its latest round of job cuts. The company promised to provide a smoother transition for the employees. The reports mentioned that the Paytm layoffs affected nearly 3,500 employees from the sales in the March quarter. One97 Communications reportedly stated it would provide outplacement support to those who resigned due to the restructuring exercise.
The reports highlighted that Paytm HR teams worked with nearly 30 companies hiring and assisting employees for immediate outplacement. Maintaining fairness and transparency, Paytm also decided to disburse due bonuses to the employees. It was previously reported that Paytm would slash 15-20% of its employees to meet its annual cost-saving plan of Rs 400 to 500 crore. Tech Layoffs: Indian IT Sector Hit by Silent Layoffs With Employee Asked To Choose Voluntary Resignation or Termination, Affects Over 20,000 People, Says Report.
According to the reports, the layoffs at Paytm have been implemented because the company faced the consequences after the PPBL RBI ban, which forced the company to stop accepting deposits and doing credit transactions. Further, it prohibited users from topping up their Paytm wallets, customer accounts, and FASTags from March 15, 2024. RBI banned the Paytm Payments Bank due to "non-compliance" and "supervisory concerns". Following this ban on PPBL, the company suffered a net loss of Rs 550 crore, significantly higher than Rs 167.5 crore in the previous year.
(The above story first appeared on LatestLY on Jun 10, 2024 04:41 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).