Layoffs in 2023: Paytm’s parent company One97 Communication handed over pink slips to more than 1000 employees
Paytm layoffs: Joining the queue of layoffs in 2023, Paytm’s parent company, One97 Communications, has decided to sack over 1,000 employees across various departments as part of a broader cost-cutting strategy, as per The Economic Times. The Times has reported.
The development comes after Paytm CEO and founder Vijay Shekhar Sharma sought suggestions from users for the fintech app while sharing his to-do list ahead of the New Year.
One97 Communications, the parent company of fintech firm Paytm, has officially confirmed that there will be a ‘minor reduction’ in its workforce. The company said the layoffs are part of cost-cutting initiatives. However, a spokesperson for the company denied recent media speculation that the non-bank lender could eliminate more than 1,000 positions. “We will be able to save 10-15% in employee costs because artificial intelligence (AI) has delivered results far beyond our expectations,” Reuters quoted a company spokesperson as saying.
This development comes amid reports of Paytm making an overhaul of its core operations. The exercise is to achieve its first net profit after the November 2021 listing. Reuters report said that during the financial year to the end of March 2023, Paytm had an average directly employed workforce of 32,798. Apart from these, there are around 1,600 contractual employees across the world, according to Paytm’s annual report.
