June 10th 2024.
In recent news, One97 Communications, the parent company of Paytm, a leading fintech firm, has announced that they will be laying off a number of employees. However, they have also stated that they are committed to supporting their staff during this transition by providing outplacement assistance.
According to a company statement, Paytm's sales employee count in the first quarter of 2024 decreased by 3,500 individuals, to a total of 36,521. This decline is attributed to the impact of the Reserve Bank of India's (RBI) decision to ban the services of Paytm Payments Bank.
In light of these changes, One97 Communications has taken steps to ensure that their employees are taken care of. They have stated that they are currently working with over 30 companies that are actively hiring, and are providing support to their employees who have opted to share their information for immediate outplacement.
While the company did not disclose the exact number of employees affected by the restructuring, they did mention that they are also disbursing bonuses to their staff. This is in line with their commitment to maintaining fairness and transparency throughout this process.
The RBI's decision to ban Paytm Payments Bank from accepting deposits, credit transactions, and top-ups in any customer accounts, wallets, and FASTags, has had a significant impact on Paytm's financials. In fact, the company reported a widening loss of Rs 550 crore in the first quarter of 2024, compared to a loss of Rs 167.5 crore in the same period last year.
In response to these challenges, One97 Communications has stated that they will be streamlining their non-core business lines and implementing AI-led interventions to maintain a leaner organizational structure. They remain committed to driving profitability, as indicated in their FY24 earnings release.
Overall, while the news of employee layoffs may be concerning, it is clear that One97 Communications is taking proactive steps to support their staff and navigate through these changes in the best way possible.
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