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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

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

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.

During FY23, the company maintained an average of 32,798 employees on its rolls, with 29,503 actively engaged. The average cost per employee stood at Rs 7,87,000. In FY24, the total expenditure surged by 34 per cent year-on-year (Y-o-Y) to Rs 3,124 crore, and the average employee cost is estimated to have increased to Rs 10,60,000, according to a report by the Financial Express.

In light of mounting losses, Paytm has initiated an employee cost reduction plan targeting to save Rs 400-500 crore. This could potentially result in a reduction of 5,000-6,300 employees.

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