Paytm’s Parent company One97 Communications Limited fired an undisclosed number of employees as a part of the restructuring process on Monday.
As a result, Paytm is giving outplacement support to these employees, and is collaborating with over 30 companies, which are currently hiring or facilitating, by sharing information to place them immediately.
‘One97 Communications Limited (OCL) is providing outplacement support to employees which have resigned as a part of the restructuring efforts by the company’ said company’s statement.
Further, the company has claimed, it has ensured fairness and transparency in this process, by giving bonuses that due to employees.
These restructuring efforts come, following Reserve Bank of India’s (RBI) prohibition on Paytm Payments Bank Limited (PPBL), a subsidiary of Paytm, from accepting deposits, credit transactions, or top-ups in customer accounts, wallets, and FASTags, from March 15. The RBI made this decision to safeguard the interests of customers and merchants.
Thus, due to the ban, Paytm’s loss increased to Rs 550 crore in the quarter of January-March 2024, compared to a loss of Rs 167.5 crore during the corresponding period in the previous year.
In future, the company will continue to Trim its non-core business segments and streamline its organizational structure using AI-driven strategies, as Paytm will continue to enhance its profitability, aligning with its objectives for the fiscal year 2024.