Paytm Layoffs: One97 Communications may cut its work force by about 15 to 20 percent. This means that 5,000-6,300 employees in the total work force may lose their jobs.
Paytm Layoffs: Paytm’s parent company One97 Communications, which is facing crisis, is going to lay off 5000 to 6300 of its employees. On the other hand, its shares have also fallen by 4.55% today to Rs 340.05. It has fallen by about 62 percent in the last six months. This stock has fallen by more than 47 percent so far this year.
Why there will be layoffs: The reason behind this drastic decision of the company is to reduce its employee costs in this financial year. According to the report of Financial Express, the company may reduce its work force by about 15 to 20 percent. This means that 5,000-6,300 employees in the total work force may lose their jobs. One97 Communications aims to save ₹400 to ₹500 crore.
When will the layoffs occur: One97 Communications had an average of 32,798 employees on its payroll in fiscal year 2023. Of these, 29,503 were actively working. Total employee costs for the financial year rose 34 per cent year-on-year to ₹3,124 crore. The report claims that the process of downsizing has already begun with over 1,000 employees being sacked in December.
Net loss of ₹ 550 crore: Let us tell you that Paytm has suffered a net loss of ₹ 550 crore in the fourth quarter, whereas last year it was ₹ 168 crore. The company’s revenue from operations fell 3 percent year-on-year to ₹2,267 crore in the March quarter after the Reserve Bank of India (RBI) banned Paytm Payments Bank. Paytm CEO expects the company to see a near-term financial impact on revenue and profitability following the RBI ban on its partner Paytm Payments Bank.
Paytm CEO Vijay Shekhar Sharma, in a letter to shareholders, has explained the company’s commitment to strengthening the governance framework, improving cost efficiency and addressing the impact on the company’s financial performance due to regulatory actions.
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