After reporting its first full year of profitability (EBITDA before ESOP) at ₹559 Cr, One97 Communications, the parent company of Paytm, has reportedly laid off employees. The latest round of employees have been laid off as part of the restructuring.
According to media reports, Paytm has claimed to offer outplacement support to affected employees and ensure a smooth transition for them. As part of their outplacement support, the HR teams are actively collaborating with 30 companies where hiring is going on. However, Paytmhas not disclosed the exact number of employees being laid off.
This is the second round of layoffs at Paytm after CEO Vijay Shekhar Sharma assured employees in February that there would be no layoffs. There has been a drastic headcount decline in Paytm’s sales department. According to report, Paytm’s sales employee headcount in March 2024 quarter dropped by about 3,500 to 36,521 personnel on a quarter-on-quarter basis, mainly due to the impact of the Reserve Bank of India’s ban on services of Paytm Payments Bank.
Earlier this year, Paytm faced turbulent times after the Reserve Bank of India (RBI) barred its payments bank subsidiary from onboarding new customers. It was also barred from accepting deposits, credit transactions, or top-ups in any customer accounts, wallets, and FASTags.