Paytm parent One97 Communications is planning to lay off employees as part of a restructuring plan

The company did not disclose the number of roles to be impacted by the restructuring

In March, the company reportedly instructed some departments to shrink their team size by as much as 20%, as part of its annual performance review

Paytm parent One97 Communications is planning to lay off an undisclosed number of employees as part of a restructuring plan, and also looks to provide outplacement support for the smooth transition.

However, the company did not disclose the number of roles to be impacted by the restructuring, confirmed a spokesperson to Inc42. The news was reported by the Economic Times first.

“One97 Communications Limited is providing outplacement support to employees which have resigned as a part of the restructuring efforts by the company,” ET reported, citing a company’s spokesperson.

Inc42’s queries to Paytm did not elicit any response till filing of this news report.

“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 INR 400-500 Cr,” based on Paytm’s earnings report for the quarter and year ended March 31, 2024.

In March, the company reportedly instructed some departments to shrink their team size by as much as 20%, as part of its annual performance review.

The average number of its sales employees stood at 36,521, as of March 2024, based on Paytm’s fourth quarter earnings data.

The company, since February, has weathered a lot of uncertainties which started from January 31, when the Reserve Bank of India (RBI) restricted Paytm Payments Bank from accepting additional deposits and top-ups.

Also, the company has seen multiple leadership exits, since then. Founder and chief executive officer (CEO) of Paytm Vijay Shekhar Sharma stepped down from the board of Paytm Payments Bank, in February.

This was followed by the exits of Praveen Sharma, senior vice president of business at One 97 Communications, CMO at One 97 Communications Sumit Mathur, Paytm Payments Bank’s CEO Surinder Chawla, Paytm’s COO Bhavesh Gupta and Paytm’s chief human resources officer Swati Rustagi.

In May, the fintech company reported its net loss widened 225% to INR 550.5 Cr in Q4 FY24 from INR 167.5 Cr in the year-ago quarter. Revenue from operations also declined 2.9% to INR 2,267.1 Cr from INR 2,334 Cr in the same period last year.

Paytm parent One97 Communications is planning to lay off employees as part of a restructuring plan

The company did not disclose the number of roles to be impacted by the restructuring

In March, the company reportedly instructed some departments to shrink their team size by as much as 20%, as part of its annual performance review

Paytm parent One97 Communications is planning to lay off an undisclosed number of employees as part of a restructuring plan, and also looks to provide outplacement support for the smooth transition.

However, the company did not disclose the number of roles to be impacted by the restructuring, confirmed a spokesperson to Inc42. The news was reported by the Economic Times first.

“One97 Communications Limited is providing outplacement support to employees which have resigned as a part of the restructuring efforts by the company,” ET reported, citing a company’s spokesperson.

Inc42’s queries to Paytm did not elicit any response till filing of this news report.

“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 INR 400-500 Cr,” based on Paytm’s earnings report for the quarter and year ended March 31, 2024.

In March, the company reportedly instructed some departments to shrink their team size by as much as 20%, as part of its annual performance review.

The average number of its sales employees stood at 36,521, as of March 2024, based on Paytm’s fourth quarter earnings data.

The company, since February, has weathered a lot of uncertainties which started from January 31, when the Reserve Bank of India (RBI) restricted Paytm Payments Bank from accepting additional deposits and top-ups.

Also, the company has seen multiple leadership exits, since then. Founder and chief executive officer (CEO) of Paytm Vijay Shekhar Sharma stepped down from the board of Paytm Payments Bank, in February.

This was followed by the exits of Praveen Sharma, senior vice president of business at One 97 Communications, CMO at One 97 Communications Sumit Mathur, Paytm Payments Bank’s CEO Surinder Chawla, Paytm’s COO Bhavesh Gupta and Paytm’s chief human resources officer Swati Rustagi.

In May, the fintech company reported its net loss widened 225% to INR 550.5 Cr in Q4 FY24 from INR 167.5 Cr in the year-ago quarter. Revenue from operations also declined 2.9% to INR 2,267.1 Cr from INR 2,334 Cr in the same period last year.