Paytm layoffs: Parent firm One97 Communications lays off employees as part of restructuring plan

Paytm claimed that it will provide outplacement support for smooth transition for laid-off employees and it is also disbursing bonuses which were due to employees.

By  Storyboard18Jun 10, 2024 11:49 AM
Paytm layoffs: Parent firm One97 Communications lays off employees as part of restructuring plan
In a letter to shareholders on May 22, chief executive officer Vijay Shekhar Sharma had said the company will focus on its core businesses and improve cost efficiencies to create a leaner organization.

Paytm-owner One97 Communications is laying off an undisclosed number of employees as part of its restructuring plan, according to a Moneycontrol report.

The fintech major claimed that it will provide outplacement support for smooth transition for laid-off employees.

"One97 Communications Limited (OCL) is providing outplacement support to employees which have resigned as a part of the restructuring efforts by the company," the firm said in a statement, adding that its human resource teams are actively coordinating with over 30 firms that are currently hiring, and providing assistance to employees who have opted to share their information, facilitating their immediate outplacement.

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

They did not not disclose the number of employees affected by the restructuring.

In a letter to shareholders on May 22, chief executive officer Vijay Shekhar Sharma had said the company will focus on its core businesses and improve cost efficiencies to create a leaner organization.

“For the coming year, while we continue to invest in the merchant sales team, as well as risk and compliance functions, we expect reductions in other employee costs. We expect annualized people cost savings of Rs 400 – Rs 500 crore,” Sharma had said at the time.

The fintech firm's sales employee headcount in March 2024 quarter fell by about 3,500 to 36,521 personnel on a quarter-on-quarter basis, mainly due the impact of the Reserve Bank of India’s ban on services of Paytm Payments Bank, stated the Moneycontrol report.

Sharma had also highlighted that company is using artificial intelligence to improve its customer care and expects opening up of new source of revenue generation and cost savings. “We anticipate tangible results from these initiatives in the coming quarters, further bolstering our competitive advantage in the market,” he had said.

First Published on Jun 10, 2024 11:43 AM

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