Paytm

On June 10, 2024, Indian fintech giant Paytm, operated by One97 Communications, confirmed a new round of layoffs affecting an undisclosed number of employees. This restructuring follows a significant reduction in its workforce, with the sales division alone seeing a drop of about 3,500 employees, bringing the total headcount to 36,521 by March 2024. The primary catalyst for these job cuts is the severe regulatory action taken by the Reserve Bank of India (RBI), which banned Paytm Payments Bank from key services starting March 15 due to non-compliance issues. This ban has severely impacted operations, contributing to a widened quarterly loss of ₹550 crore. As part of its effort to streamline and drive profitability, Paytm is pruning non-core businesses and offering outplacement support and due bonuses to affected employees during this transition.

Paytm warned of job cuts on Wednesday after reporting a widened net loss in the fourth quarter, as it grapples with a regulatory clampdown by India's central bank. The company expects to cut employee expenses and reduce annual staff costs by $48 million to $60 million, following a ban on its banking partner Paytm Payments Bank in February.

Paytm, the Indian financial services and digital payments company, has laid off over 1,000 employees across various units, impacting at least 10% of its total workforce. This significant restructuring, implemented over recent months, is part of a cost-reduction and business realignment strategy. The move follows the company's withdrawal from small-ticket consumer lending and 'buy now pay later' segments due to regulatory restrictions by the Reserve Bank of India. As a publicly listed new-age tech firm, Paytm is now shifting its focus towards wealth management and insurance broking. These layoffs represent one of the largest job cuts by an Indian tech company in 2023, reflecting broader pressures in the sector as funding for loss-making enterprises has dried up.

Indian digital payments giant Paytm is laying off approximately 500 to 700 employees, representing about 5% to 10% of its workforce, following its annual performance review cycle. The company cited that these employees were identified as underperformers based on its performance metrics. In light of the current economic climate, Paytm will retain these employees on its payroll for an additional two months to support their transition and ensure they receive all due payments. Concurrently, the fintech unicorn plans to hire over 500 new staff for roles in financial services, product, and technology, and has allocated ₹250 crore for employee stock option plans to reward high performers and new hires.