Paytm Cuts Jobs, Provides Outplacement Assistance

Following regulatory action by the Reserve Bank of India (RBI) against Paytm Payments Bank led by Vijay Shekhar Sharma, the company has faced challenges. As part of its restructuring process, Paytm’s parent company, One97, has recently implemented layoffs, although the exact number of employees affected has not been disclosed.

Related: Paytm’s Stock Dips by Almost Half in 2024 Amid Regulatory Challenges

The company has chosen not to disclose the precise number of employees impacted but is actively offering outplacement assistance. This includes partnering with more than 30 companies currently seeking talent and aiding individuals who have opted to share their details to expedite their transition.

A spokesperson from Paytm emphasized, “Our employees are central to our operations, and safeguarding their welfare remains our top priority. Throughout this transitional phase, we remain steadfast in our commitment to maintaining ethical standards and providing comprehensive support to our workforce.”

The reduction in workforce at Paytm follows a period of significant challenges, notably the prohibition by the Reserve Bank of India (RBI) on Paytm Payments Bank services. Effective March 15, 2024, the ban prevents the bank from engaging in deposit-taking, credit transactions, or account top-ups for customers, including wallets and FASTags.

This measure was implemented to safeguard the interests of both customers and merchants. Consequently, Paytm has seen a decrease of approximately 3,500 sales employees, bringing the total to 36,521 personnel in the March 2024 quarter. This initiative is part of the company’s broader strategy to streamline operations and concentrate on core business functions, thereby enhancing cost-effectiveness.

Amidst the recent staff reductions, Paytm affirms its unwavering commitment to advancing its technological infrastructure and financial offerings. Additionally, the company emphasizes its dedication to upholding fairness and transparency by distributing owed bonuses to its employees. “In ensuring fairness and transparency, Paytm is distributing overdue bonuses to its employees,” the company asserted. This strategic decision aims to uphold team morale and motivation during the ongoing restructuring period.

Paytm, confronted by regulatory actions, undertook a restructuring endeavor resulting in undisclosed layoffs. The company prioritized employee welfare, offering outplacement aid while navigating challenges stemming from an RBI embargo on its banking services. This led to a reduction in personnel and a shift towards core functions to boost efficiency. Despite workforce adjustments, Paytm remains devoted to technological advancements and financial services. Notably, its commitment to transparency is exemplified by promptly distributing overdue bonuses, solidifying morale during ongoing transformations.