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Paytm layoffs: Company may cut jobs of 5,000-6,300 employees amid crisis
Paytm layoffs: Paytm's Vijay Shekhar Sharma acknowledged the impact on revenue and profitability from the RBI's regulatory actions.
Paytm layoffs: Paytm parent company One97 Communications may cut jobs to reduce its employee costs this fiscal year, it was reported. The company may cut around 15-20 per cent of its workforce, Financial Express reported. This means that the workforce could be reduced by 5,000-6,300 employees as One97 Communications aims to save ₹400-500 crore.
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How many employees does One97 Communications have?
In FY23, One97 Communications had an average of 32,798 employees on payroll- 29,503 actively working. For FY24, total employee costs increased by 34 per cent year-on-year to ₹3,124 crore.
When will Paytm start layoffs?
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The reduction process has already begun with over 1,000 employees terminated in December as the company aims to streamline operations and cut costs, the report claimed.
What about Paytm's Q4 results?
Paytm reported a net loss of ₹550 crore in the January-March quarter, compared to ₹168 crore the previous year. The company's revenue from operations fell by 3 per cent year-on-year to ₹2,267 crore in the March quarter after the Reserve Bank of India (RBI) imposed restrictions on Paytm Payments Bank.
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What Vijay Shekhar Sharma said on Paytm's future?
Paytm's Vijay Shekhar Sharma acknowledged the impact on revenue and profitability from the RBI's regulatory actions and said, “We learned a lot of our lessons to become better and resilient. We also resolved to be fully compliant according to the regulators expectations in letter and spirit.”
