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Paytm Layoffs: Restructures Workforce and Offers Bonuses

paytm

Fintech giant Paytm’s parent company, One97 Communications, is undergoing a restructuring process that includes employee layoffs. The exact number of affected positions remains undisclosed.

This comes on the heels of a significant reduction in Paytm’s sales force earlier this year. Around 3,500 employees exited the company in the March quarter due to the impact of the Reserve Bank of India’s (RBI) restrictions on Paytm Payments Bank services.

Restructuring with Support

One97 Communications has assured those impacted by the current layoffs of outplacement support to ease their transition into new opportunities. The company’s HR department is actively collaborating with over 30 recruitment firms to help place these employees. They are prioritizing those who have opted to share their job search information.

Balancing Measures of Paytm

In a move seen as promoting fairness and transparency, Paytm has confirmed that it will be disbursing bonuses due to employees despite the ongoing restructuring. This seemingly contradictory approach of offering bonuses while laying off staff suggests Paytm is aiming to balance cost-cutting measures with recognizing employee contributions.

RBI Regulations and Financial Performance

The recent round of layoffs follows the RBI’s directive in March 2024, which prohibited Paytm Payments Bank from accepting deposits, offering credit services, or processing top-ups for customer accounts, wallets, and FASTags. This regulatory action has significantly impacted the financial performance, contributing to a wider loss in the last quarter.

The restructuring efforts aim to navigate these challenges and improve the company’s financial health. However, the layoffs are likely to cause concern among employees and raise questions about Paytm’s future direction. Despite the challenges, the company continues to navigate the evolving landscape of digital finance, adapting to regulatory changes and market dynamics3.

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