May 24 (Punjab Khabarnama) : One97 Communications, the company that owns Paytm, has increased the tension of its employees. After incurring a loss of Rs 550 crore in the last quarter of FY 2024, the company has taken the decision of cost cutting, after which the jobs of Paytm employees are at stake. According to a report, One 97 Communications may cut its employee strength by about 15-20 percent. This means the workforce could be cut by 5,000-6,300. Let us tell you that the company is setting a target of cost cutting of Rs 400 to 500 crore.
1 thousand people were laid off from their jobs in December
One97 Communications had an average of 32,798 employees in FY23, of which 29,503 were actively working. Total employee costs increased 34 per cent year-on-year to ₹3,124 crore in FY24. The report claims that the layoff has already started in Paytm. Last year, in the month of December, the company had laid off more than 1 thousand people simultaneously.
Let us tell you that Paytm had presented the results of the last quarter of the financial year 2024 two days ago, in which the company has suffered a loss of Rs 550 crore whereas in the last financial year it was Rs 168 crore. Apart from this, the action taken by the Reserve Bank of India on Paytm’s UPI transactions and Paytm Payment Bank has also had a strong impact, after which Paytm’s revenue in the March quarter fell year-on-year to Rs 2,267 crore.
CEO had hinted at layoffs
It is known that after presenting the company’s March quarter results on May 22, Paytm CEO Vijay Shekhar Sharma had told his shareholders that we are optimizing our cost structure, taking advantage of AI capabilities and improving our core business. By focusing on this, we will be able to achieve significant cost efficiencies. This includes creating a smaller organization structure and shedding non-core businesses.