One97 Communications news update:
One97 Communications, the parent company of Paytm, announced on June 10 that it is laying off an unspecified number of employees as part of a restructuring plan initiated by CEO Vijay Shekhar Sharma in May. The company stated that it will provide outplacement support to assist affected employees in their transition. In a letter to shareholders dated May 22, Sharma indicated that the firm would focus on its core businesses and enhance cost efficiencies, hinting at potential layoffs. He mentioned that employee costs have risen significantly due to investments in technology and financial services.
While these investments will continue, the company aims to reduce employee costs, potentially saving Rs 400-500 crore annually. The sales employee headcount for the fintech firm decreased by about 3,500 to 36,521 in the March 2024 quarter, primarily due to the Reserve Bank of India’s ban on Paytm Payments Bank services.
