Paytm layoffs: Company cuts jobs citing restructuring, gives bonuses as well

Paytm said, “One97 Communications Limited (OCL) is providing outplacement support to employees which have resigned as a part of the restructuring efforts."

Paytm's parent company One97 Communications is laying off an undisclosed number of employees and it will provide outplacement support for their smooth transition, the company said in a statement. It said, “One97 Communications Limited (OCL) is providing outplacement support to employees which have resigned as a part of the restructuring efforts by the company. The company's human resource teams are actively collaborating with over 30 companies that are currently hiring, and providing assistance to employees who have opted to share their information, facilitating their immediate outplacement.”

Paytm layoffs: The interface of payments app Paytm is seen in front of its logo displayed in this illustration picture. (Reuters)

"Paytm is also disbursing bonuses which were due to employees, ensuring fairness and transparency in the process," the statement added.

In the March 2024 quarter, Paytm's sales employee headcount dropped by about 3,500 to 36,521 personnel on a quarter-on-quarter basis, This came after the Reserve Bank of India (RBI) banned several services of Paytm Payments Bank barring the Paytm associate from accepting deposits, credit transactions or top-ups in any customer accounts, wallets, and FASTags.

In Quarter 4, the company reported a loss of ₹550 crore which was ₹167.5 crore in the same period a year ago.

Paytm further said, “As part of its FY24 earnings release, One97 Communications stated that it will be pruning its non-core business lines, and will continue its efforts to maintain a leaner organisation structure through AI-led interventions. The company has been actively working towards driving profitability, in line with its guidance.”

Paytm share price

Shares of One 97 Communications extended their gaining streak for the third consecutive day and surged 8.60% in morning trade crossing the ₹400 mark for the first time in 8 weeks to reach ₹414. With this the stock has gained 33.54% from its all-time low of ₹310 in May.