Layoffs in Paytm: In the January-March 2024 quarter, the number of Paytm employees (sales) decreased by about 3,500 on a quarterly basis to 36,521. The main reason for this was the ban imposed by the Reserve Bank of India on the services of Paytm Payments Bank. One97 Communications’ loss increased to Rs 550 crore in the January-March quarter of FY 2023-24
Paytm’s parent company, One97 Communications, has once again laid off employees. The company claimed in a statement that it is providing ‘outplacement’ (recruitment elsewhere) assistance to the employees for their smooth transfer. The number of employees laid off has not been disclosed in the statement. According to a report by news agency PTI, the number of Paytm employees (sales) declined by about 3,500 quarterly to 36,521 in the January–March 2024 quarter. The main reason for this was the ban imposed by the Reserve Bank of India on the services of Paytm Payments Bank.
“One97 Communications Limited is providing outplacement assistance to employees who have resigned as part of the company’s restructuring efforts. The company’s HR teams are actively collaborating with over 30 companies that are currently hiring employees. Employees who have opted to share their details are being provided assistance, helping them get immediate placement,” the company said in a statement on June 10. It also said that Paytm is also paying outstanding bonuses to employees, so that there is fairness and transparency in the process.
Paytm Payments Bank services are down since March
The Reserve Bank of India (RBI) had barred Paytm Payments Bank Limited (PPBL) from accepting deposits, credit transactions or top-ups in any customer account, wallet and Fastag from March 15, 2024, keeping in mind the interests of customers including merchants. Fintech company One97 Communications’ loss widened to Rs 550 crore in the January-March quarter of FY 2023-24. The company has written off an investment of Rs 227 crore for a 39 per cent stake in PPBL in the January-March quarter. Paytm founder and CEO Vijay Shekhar Sharma holds a 51 per cent stake in PPBL.
