Paytm Layoffs: Fitench hands pink slip to employees after RBI ban on Paytm Payments Bank services/Reuters

VoM News Desk | June 10, 2024 | 07:44 PM IST | Breaking News | Follow on Google News

Paytm Layoffs: Fitench hands pink slip to employees after RBI ban on Paytm Payments Bank services

Paytm Layoffs: Fitench hands pink slip to employees after RBI ban on Paytm Payments Bank services

MINT

Paytm Layoffs: Fintech firm One97 Communications, the parent company of Paytm, confirmed the layoff of an undisclosed number of employees, on June 10. The company claims to be providing outplacement support to ensure a smooth transition for those affected, PTI reported.

According to the statement, the number of employees at Paytm sales division dropped by approximately 3,500, bringing the total headcount to 36,521 in the March 2024 quarter. This decline is primarily attributed to the Reserve Bank of India’s (RBI) ban on services provided by Paytm Payments Bank.

“One97 Communications Limited (OCL) is providing outplacement support to employees who have resigned as a part of the restructuring efforts by the company,” the company stated.

The human resource teams at Paytm are reportedly working with over 30 companies that are currently hiring, assisting employees who have chosen to share their information for immediate outplacement.

“Paytm is also disbursing bonuses which were due to employees, ensuring fairness and transparency in the process,” the statement added.

The RBI barred Paytm Payments Bank Limited (PPBL), an associate of Paytm, from accepting deposits, credit transactions, or top-ups in any customer accounts, wallets, and FASTags starting from March 15, citing non-compliance issues and supervisory concerns.

Following this ban, Paytm reported a widened loss of ₹550 crore in the January-March 2024 period, compared to a loss of ₹167.5 crore in the same period a year ago.

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“As part of its FY24 earnings release, One97 Communications stated that it will be pruning its non-core business lines and will continue its efforts to maintain a leaner organization structure through AI-led interventions. The company has been actively working towards driving profitability, in line with its guidance,” the company stated.

(With inputs from PTI)

VoM News Desk

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