- Paytm announces layoffs to improve cost efficiency.
- Affected employees will receive outplacement support.
- Company aims to save Rs 400-500 crore annually through restructuring.
Paytm’s parent company, One97 Communications, announced on June 10 that it is laying off an undisclosed number of employees as part of a restructuring plan. This move, initiated by CEO Vijay Shekhar Sharma in May, aims to improve cost efficiency. The company assured that it will provide outplacement support to help affected workers find new job opportunities.
In a letter to shareholders on May 22, Sharma emphasized focusing on core businesses and enhancing cost efficiencies, hinting at potential layoffs. He noted that employee costs have risen significantly due to investments in technology and financial services. The restructuring is expected to save the company Rs 400-500 crore annually.
A Paytm spokesperson highlighted the company’s commitment to its employees, stating, “Our employees are our most valuable assets, and their well-being is of paramount importance to us. We are committed to upholding ethical standards and ensuring necessary support during this transition period.”
As part of the restructuring, the company’s sales employee headcount fell by about 3,500 to 36,521 in the March 2024 quarter, mainly due to the Reserve Bank of India’s ban on Paytm Payments Bank services. Despite the layoffs, Paytm plans to continue investing in technology and financial services while reducing overall employee costs.
