Paytm’s parent company One97 Communications announces layoffs. Click to know why

One97 Communications, the parent company of Paytm, has announced layoffs as part of its restructuring efforts. The company has not disclosed the number of employees affected but is providing outplacement support to help them find new jobs. In a statement, One97 Communications said, “Our human resource teams are working with over 30 companies that are currently hiring to assist employees who have opted to share their information, facilitating their immediate outplacement.”

In the March 2024 quarter, the number of Paytm’s sales employees dropped by about 3,500 to a total of 36,521. This reduction came after the Reserve Bank of India (RBI) imposed restrictions on several services of Paytm Payments Bank, including accepting deposits and credit transactions.

For the fourth quarter, One97 Communications reported a loss of ₹550 crore, a significant increase from the ₹167.5 crore loss in the same period last year. The company stated, “As part of its FY24 earnings release, One97 Communications will prune its non-core business lines and continue efforts to maintain a leaner organization structure through AI-led interventions.”

Despite the losses, shares of One97 Communications have been on the rise. The stock surged 8.60% in morning trade, crossing the ₹400 mark for the first time in eight weeks to reach ₹414. This marks a 33.54% increase from its all-time low of ₹310 in May.