Paytm Furloughs Undisclosed Number Of Employees: Company Ensures Outplacement Support

The parent company of Paytm, One97 Communications Limited is currently undergoing a restructuring process that involves a large number of people being furloughed and the count is undisclosed.

According to a PTI report, Paytm is providing outplacement support to these employees, who are being laid off, collaborating with over 30 companies that are currently hiring and assisting those who have chosen to share their information to aid their immediate outplacement. As the company stated, they will also clear all the dues of the layoffs to ensure transparency and fairness provided to the employees.

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Paytm’s headcount of sales employees has dwindled by approximately 3,500 to 36,521 personnel compared to the previous quarter, on account of the Reserve Bank of India’s ban on Paytm Payments Bank services (PPBL), an association of Paytm from accepting deposits, credit transactions, or top-ups in any customer accounts, wallets and FASTags effective from March 15 onwards. This decision was made by RBI to protect the interest of customers including entrepreneurs.

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As an outcome, Paytm reported a loss of Rs 550 crore in the January -March 2024 quarter compared to a loss of Rs 167.5 crore in the same time a year ago. The company reported that it might flourish in the fiscal year 2024, as the non-core business lines continue to prune through AI-led interventions. In a statement released on Monday, the company said, OCL will be providing outplacement to the employees as a part of restructuration and all necessary help should be done to ensure the outplacement transparently befell to those who were laid off in the process.