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Paytm’s parent company, One97 Communications Limited (OCL), has announced layoffs as part of its ongoing restructuring efforts. In a recent statement, the company confirmed that it is providing outplacement support to affected employees to ensure a smooth transition. The company’s human resource teams are actively collaborating with over 30 companies currently hiring, facilitating immediate outplacement for employees who have chosen to share their information.
Despite the layoffs, Paytm has ensured fairness and transparency by disbursing due bonuses to the affected employees. This move aims to mitigate the impact of the layoffs and support the employees during this transition period.
In the March 2024 quarter, Paytm’s sales employee headcount dropped by approximately 3,500, reducing the total personnel to 36,521. This significant reduction followed the Reserve Bank of India’s (RBI) ban on several services of Paytm Payments Bank, preventing the company from accepting deposits, credit transactions, or top-ups in any customer accounts, wallets, and FASTags. Consequently, Paytm reported a loss of ₹550 crore for Quarter 4, compared to ₹167.5 crore in the same period the previous year.
One97 Communications further announced its strategy to prune non-core business lines as part of its FY24 earnings release. The company aims to maintain a leaner organizational structure through AI-led interventions, aligning with its ongoing efforts to drive profitability.
Despite these challenges, shares of One97 Communications have shown a positive trend. The stock extended its gaining streak for the third consecutive day, surging by 8.60% in morning trade to cross the ₹400 mark for the first time in eight weeks, reaching ₹414. This marks a 33.54% increase from its all-time low of ₹310 in May.
The restructuring and strategic adjustments at Paytm highlight the company’s commitment to achieving profitability and sustaining growth, even as it navigates regulatory challenges and market fluctuations.
Sources By Agencies
