June 10 (Punjab Khabarnama) : Financial technology company One97 Communications has laid off employees. One97 Communications owns Paytm. The company claimed in a statement that it is providing ‘outplacement’ (recruitment elsewhere) assistance to employees for their smooth transfer.
However, the number of employees laid off was not disclosed in the statement. Paytm’s employee (sales) headcount declined by about 3,500 quarterly to 36,521 in the January-March 2024 quarter, mainly due to the Reserve Bank of India banning the services of Paytm Payments Bank.
The company said in a statement on Monday, “The company’s HR team is actively collaborating with more than 30 companies that are currently recruiting employees. We are providing support to employees who have chosen to share their information, which is helping in their immediate relocation.”
The Reserve Bank of India (RBI) had barred Paytm Payments Bank Limited (PPBL) from accepting deposits, credit transactions or top-ups in any customer account, wallet and Fastag from March 15, keeping in mind the interest of customers including merchants. Fintech company One97 Communications’ loss widened to Rs 550 crore in the fourth quarter of FY 2023-24.
The company has written off an investment of Rs 227 crore for a 39 percent stake in PPBL in the January-March quarter. Paytm founder and chief executive officer (CEO) Vijay Shekhar Sharma holds a 51 percent stake in PPBL.
