‘Slight reduction’ in workforce: Paytm’s parent company One 97 Communications confirms layoffs

One 97 Communications, the parent company of fintech firm Paytm, officially confirmed that there would be a ‘minor reduction’ in its workforce. The company said that the layoffs are part of cost-cutting initiatives. However, a spokesperson for the company rebuffed recent media speculations that had said that the non-bank lender might eliminate over 1,000 positions. “We will be able to save 10-15% in employee costs as Artificial Intelligence (AI) has delivered more than we expected it to,” the company spokesperson was quoted as saying by Reuters.

The development comes amid reports of Paytm overhauling its core operations. The exercise is in bid to achieve its first net profit since November 2021 listing. The Reuters report said that during fiscal year to end-March 2023, Paytm had an average of 32,798 directly employed workforce. Apart from these, there are around 1,600 contracted employees around the globe, according to Paytm’s annual report.

The company, which made D-street debut with $2.5 billion IPO in 2021, has witnessed a decline of around 70% so far. The company has been facing increased concerns of the investors regarding sustained losses. Additionally, the presence of formidable rivals like Walmart’s PhonePE and regulatory restrictions pose potential threats to its growth.