An undisclosed number of employees are being laid off from the fintech firm One97 Communications, owner of Paytm brand. The firm claimed that it will provide outplacement support for their smooth transition, the company said in a statement, reported PTI.

In the March 2024 quarter, Paytm experienced a reduction in its sales employee headcount, declining by approximately 3,500 to 36,521 personnel compared to the previous quarter. This decline was primarily attributed to the repercussions of the Reserve Bank of India’s prohibition on services provided by Paytm Payments Bank.

The company stated in its statement, “One97 Communications Limited (OCL) is providing outplacement support to employees who have resigned as a part of the restructuring efforts by the company. 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.”

However, Paytm did not disclose the specific number of employees affected by the restructuring.

“Paytm is also disbursing bonuses which were due to employees, ensuring fairness and transparency in the process,” the statement mentioned.

The Reserve Bank of India (RBI) prohibited Paytm Payments Bank Limited (PPBL), an affiliate of Paytm, from accepting deposits, credit transactions, or top-ups in any customer accounts, wallets, and FASTags, effective from March 15, prioritizing the interests of customers, including merchants.

As a result of the ban imposed by RBI on transactions related to its payments bank, Paytm reported a widening of loss to Rs 550 crore in January-March 2024. This contrasts with a loss of Rs 167.5 crore in the same period a year ago.

According to the company’s statement, One97 Communications announced as part of its FY24 earnings release that it intends to streamline its non-core business lines and will persist in implementing AI-led interventions to maintain a leaner organizational structure. The company is committed to driving profitability in alignment with its strategic objectives.