Paytm permanent workforce shrinks by 48%, slashes employee costs by Rs 651 crore in FY25

In a bid to narrow losses and boost revenues, Paytm reduced its total employee count by 10.4% in fiscal year 2025. The fintech major's overall headcount stood at 39,368 in FY25, down from 43,960 in FY24. The Noida-based company's permanent employee count declined by 48% year-on-year (YoY) to 14,656 in FY25. With a shrinking workforce, the company's employee cost also dropped to Rs 651 crore during the same fiscal year.

Paytm exceeded its initial target for reducing employee costs. While it had planned to cut employee expenses by Rs 400-500 crore in FY25, the company achieved a 21% YoY reductions.

Leveraging technology, Paytm specifically focussed on cutting non-sales employee costs to create a leaner organizational structure and enhance productivity. However, investments in the sales team continued. As of March 31, 2025, 83% of Paytm's workforce--or 32,614 staff--were engaged in sales roles.

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"Our employee cost (excluding ESOP) reduced by Rs 651 crore YoY (21%) to Rs 2,473 crore in FY 2025 from Rs 3,124 crore in FY 2024, surpassing our target of Rs 400- Rs 500 crore annualized people cost savings by creating a leaner organizational structure and increasing productivity. Non-sales employee costs, which include technology, operations, and support teams, saw a significant decline of 28% YoY in FY 2025," according to the company.

The average increase in employee remuneration also declined sharply--from 14.6% in FY24 to 5.92% in FY25. During the period under review, Paytm allotted 24,31,710 equity shares with a face value of Rs 1 each, fully paid-up, upon exercise of stock options by the eligible employees of the company.

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Meanwhile, founder and chief executive officer (CEO) Vijay Shekhar Sharma's annual remuneration remained unchanged at Rs 4.4 crore in FY25, while perquisites amounted to Rs 47.3 lakh. The ratio of Sharma's remuneration to the median remuneration of Paytm's employees stood at 65.82:1.

Paytm reduced its overall expenses by 22% to Rs 9,096 crore in FY25 compared to Rs 11,644 crore in the previous fiscal year. The fintech firm slashed its marketing costs by Rs 104 crore YoY (17%) to Rs 508 crore in FY25 from Rs 612 crore in FY24. On a consolidated basis, its FY25 losses narrowed to Rs 663 crore from Rs 1,422 crore in the previous fiscal year. However, its total income declined from Rs 10,524 crore to Rs 7,625 crore.