- Paytm’s parent company, One97 Communications, aims to cut 5,000-6,300 jobs to reduce costs.
- Financial difficulties arise with a net loss of Rs 550 crore in Q4 FY24 and RBI restrictions impacting operations.
- Despite challenges, Paytm remains optimistic about future profitability and plans to strengthen its merchant ecosystem.
Paytm’s parent company, One97 Communications, is set to implement significant layoffs, targeting 5,000-6,300 employees to reduce costs amidst financial challenges. The move comes as part of efforts to streamline operations and manage growing losses.
The company’s financial performance has been challenging, with a net loss of Rs 550 crore in the January-March quarter, attributed partly to regulatory restrictions imposed by the Reserve Bank of India (RBI) on Paytm Payments Bank. These restrictions, impacting operations, led to a 3% year-on-year decline in revenue from operations.
In response to these challenges, Paytm’s management remains optimistic about future profitability, with plans to strengthen its merchant ecosystem and improve governance across its entities. Despite near-term disruptions, the company expects improvements from the second quarter of FY25 onwards, with the aim of achieving EBITDA breakeven by FY26.
