Mumbai, May 24: Paytm CEO Vijay Shekhar Sharma recently hinted at the company's plans to achieve significant cost efficiencies through layoffs. This strategic move comes in response to the company's net loss of Rs 550 crore in the fourth quarter. The CEO further outlined the company's vision for a 'leaner organisational structure' and 'pruning of non-core businesses'. While the specifics of the Paytm layoffs, including the timing and number of employees affected, were not disclosed, the company's future plans demonstrate its firmness to save cost and focus on the core-business.

According to a report by Business Standard, Paytm-parent company One97 Communication would lay off around 15-20% of the total workforce. The report mentioned that the Paytm layoffs could potentially reduce 5,000 to 6,300 employees from the total workforce. It further mentioned that the company had around 32,798 average employees on payroll during FY23; out of these, 29,503 were actively engaged. The report further highlighted that the average cost of these employees was recorded at Rs 7,87,000. Paytm Layoffs Happening? CEO Vijay Shekhar Sharma Hints at Possible Job Cuts.

The report said that in FY24, the cost of employees increased to Rs 10,60,000, and the expenditure surged by 34% year-on-year to Rs 3,124 crore. Paytm CEO Vijay Shekhar Sharma recently announced the company's plan to save Rs 400-500 crore annually by implementing the layoffs. Paytm said that employee costs have increased in recent years because of investments in areas like technology, merchant sales, and financial services. The fintech company said that the investment in merchant sales teams, risk, and compliant functions will continue but will reduce employee costs. Telstra Layoffs: Australia’s Telecommunication Giant To Lay Off 2,800 People To Cut Costs, Deal With Inflation.

Paytm is also confident in using artificial intelligence technology (AI); it would be able to streamline its cost structure and focus on core business, leading to substantial cost savings. The company faced disruption in Q4 2024 due to RBI's ban on its PPBL services and the resignation of Vijay Shekhar Sharma from the board - all leading up to the massive losses this year. Paytm is expected to announce future layoffs and inform the number of employees affected by the decision.

(The above story first appeared on LatestLY on May 24, 2024 11:36 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).