Paytm Layoffs Happening? CEO Vijay Shekhar Sharma Hints at Possible Job Cuts
After posting a net loss of Rs 550 crore, Paytm CEO announced that the company would likely cut employees to achieve significant cost efficiencies. The Paytm layoffs would reportedly help the company save Rs 400-500 million annually. Check more details here.
Mumbai, May 22: Paytm, in a strategic move, is considering layoffs following a reported Rs 550 crore net loss in the fourth quarter. Paytm CEO Vijay Shekhar Sharma has hinted at company's plan of workforce reduction and focusing on core businesses to enhance cost efficiencies. As reported, this aligns with the company's plan to adopt a 'learner organisational structure' and 'pruning of non-core businesses'.
Paytm faced several challenges this year, starting from the RBI ban on January 31, 2024, which stopped PPBL from accepting deposits or top-ups in any customer's account, FASTags, prepaid instruments, and wallets. Then, Vijay Shekhar Sharma resigned from the Paytm Payment Bank's board due to ongoing regulatory challenges. According to a report, Paytm said it would focus on the core business led by the capabilities of AI. He said the company had been working on "significant cost efficiencies including learner organisational structure." This hinted that there might be possible Paytm layoffs in the following weeks. Paytm Planning To Adopt ‘Learner Organisation Structure’ and ‘Pruning of Non-Core Businesses’ After Reporting Rs 550 Crore Net Loss in Q4.
The report mentioned that Paytm expected "tangible results from the initiatives in the coming quarters". The company said it would help it gain a competitive advantage in the market. The report said Paytm's revenue was down by 20% compared to the previous quarter. The company took a beating after the RBI banned some of the PPBL services. According to a report by Moneycontrol, Paytm CEO Vijay Shekhar Sharma, the firm's employee costs have significantly risen over the years. He reportedly said the reason was the investment in tech and financial services. The CEO said that the investment would continue, but the company would take steps to cut the cost of the employees. TikTok Layoffs: ByteDance-Owned Platform To Announce Massive Job Cuts, Likely To Slash 1,000 Roles, Says Report.
Paytm CEO mentioned that the company would undertake several steps to solidify its "governance framework" and appoint experts as advisors and independent directors. The Paytm layoffs will likely be a step forward for the company to achieve cost-effectiveness. The report mentioned that Vijay Shekhar Sharma also said that the firm had been using artificial intelligence to improve the customer car, and it would likely open up a new source of revenue generation and save more costs. The Paytm layoffs and other measures are expected to help the company save Rs 400-500 crore annually, said the report.
(The above story first appeared on LatestLY on May 22, 2024 04:45 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).