Amid revelation that Paytm fired an undisclosed number of its employees as part of restructuring efforts, the fintech major's parent company One97 Communications on Monday said it will support the resigned employees with outplacement for their smooth transition.
The fintech company added that it is working with 30 firms to provide recruitment support. "One97 Communications Limited (OCL) is providing outplacement support to employees which have resigned as a part of the restructuring efforts... The company's human resource teams are actively collaborating with over 30 companies that are currently hiring, and providing assistance to employees who have opted to share their information, facilitating their immediate outplacement," the company said in a statement.
The number of sales employees working at Paytm plunged by around 3,500 in the quarter ending March 2024 to 36,521. This is primarily attributed to the curbs imposed by the Reserve Bank of India on the company's banking arm Paytm Payments Bank over alleged irregularities. RBI had stopped the payments bank from accepting deposits and allowing credit transactions besides barring top-ups in the Paytm wallet and FASTags from March 15.
In the statement, One97 Communications added, "Paytm is also disbursing bonuses which were due to employees, ensuring fairness and transparency in the process.”
On May 22, One97 Communications announced its March quarter earnings report, saying it recorded a reduction in revenue while its consolidated net loss widened to Rs 549.60 crore in the fourth quarter from Rs 219.8 crore in the quarter ended December. The consolidated net loss in the same quarter in 2023 was Rs 168.9 crore.
The revenue from operations saw a 3 per cent Year-on-Year dip to Rs 2,267.1 crore against Rs 2,334.5 crore in the March 2023 quarter.
"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 organisation structure through AI-led interventions. The company has been actively working towards driving profitability, in line with its guidance," the firm added in the statement.