New Delhi. Fintech firm One97 Communications, which owns the Paytm brand, issued a statement. In this statement, the company said that they have started laying off employees. Paytm said in its statement that it is helping employees for outplacement.

Paytm's sales workforce declined by nearly 3,500 quarter-on-quarter to 36,521 in the March 2024 quarter. The main reason for the reduction in the number of employees is the action taken by the RBI. The Reserve Bank of India had banned the services of Paytm Payments Bank.

One97 Communications Ltd (OCL) is helping in outplacement of employees who have resigned as part of the company's restructuring efforts.

The company said that the company's human resources teams are actively collaborating with more than 30 companies. However, Paytm did not disclose the number of employees affected by the restructuring.

Paytm is also offering bonuses to employees to ensure fairness and transparency in the process, according to a company statement.

RBI action

The Reserve Bank of India (RBI) had barred Paytm's affiliate Paytm Payments Bank Limited (PPBL) from accepting deposits, credit transactions or top-ups in any customer account, wallet and Fastag, keeping in mind the interest of the customers. RBI had imposed a ban on Paytm Payments Bank Limited from March 15, 2024.

After the RBI action, Paytm informed that the loss has increased to Rs 550 crore in January-March 2024. A year ago in the same period, the company had suffered a loss of Rs 167.5 crore.

Paytm said in its statement

It will cut its non-core business lines in its FY24 earnings release, and continue its efforts to maintain a lean organisation structure through AI-led interventions. The company is actively working towards increasing profitability.