BREAKING: Paytm Sacks Employees As Part of Restructuring, Announces Bonus

New Delhi: Fintech company One97 Communications, the owner of Paytm, is currently undergoing a workforce reduction, though it has not specified the number of employees affected. The company is providing outplacement support to assist those impacted by the restructuring. Notably, Paytm's sales employee headcount decreased by approximately 3,500 to 36,521 personnel in the March 2024 quarter compared to the previous quarter, largely due to the Reserve Bank of India's ban on the services of Paytm Payments Bank.

“One97 Communications Limited (OCL) is providing outplacement support to employees who have resigned as a part of the restructuring efforts by the company,” the company said in a statement on Monday. It added,“The company’s human resource teams are actively collaborating with over 30 companies that are currently hiring, and providing assistance to employees who have opted to share their information, facilitating their immediate outplacement."

Paytm Announces Bonus For Employees

Despite the layoffs, the company has also announced bonuses for its employees. “Paytm is also disbursing bonuses which were due to employees, ensuring fairness and transparency in the process,” the statement added.

RBI Action on Paytm

The Reserve Bank of India (RBI) barred Paytm Payments Bank Limited (PPBL), an associate of Paytm, from accepting deposits, credit transactions, or top-ups in any customer accounts, wallets, and FASTags starting March 15, citing the interest of customers and merchants. The ban has impacted Paytm's financial performance. Consequently, Paytm reported a widened loss of Rs 550 crore for the January-March 2024 quarter, compared to a loss of Rs 167.5 crore in the same period the previous year.