Paytm Layoff: One97 Communications Reduces Workforce Following RBI Ban, Offers Outplacement Support

Paytm Layoff: One97 Communications Reduces Workforce Following RBI Ban, Offers Outplacement Support

On Monday, June 10, the shares of the company surged 8.60 per cent in the morning trade, crossing the Rs 400 mark for the first time in eight weeks to reach Rs 414.

Oliviya KunjumonUpdated: Monday, June 10, 2024, 02:00 PM IST
article-image
Paytm Layoff: One97 Communications Reduces Workforce Following RBI Ban, Offers Outplacement Support | File image/ Representative image

One97 Communications, the parent company of one of the popular fintech brand, Paytm, recently announced a round of layoff as part of the restructuring plan. This move by the company comes after the Reserve Bank of India (RBI) earlier this year imposed certain restriction on the Paytm Payment Bank Services which significantly impacted the company's operations and financial performance.

Layoffs and support for employees

Although, the company has not yet disclosed the exact number of employees who will be affected by this layoff but has extended support that it will facilitate those impacted by providing outplacement services, the company said in statement.

Moreover, the HR team of the company is also collaborating with over 30 companies which are currently hiring, to offer an assistance to employees who want a job replacement.

Additionally, in the statement released, the company added that all due bonuses are disbursed to maintain fairness and transparency.

Share performance

Paytm

Paytm | File

Despite facing many challenges, the shares of the company has shown a significant resilience.

On Monday, June 10, the shares of the company surged 8.60 per cent in the morning trade, crossing the Rs 400 mark for the first time in eight weeks to reach Rs 414. This also adds a 33.54 per cent rise from its all time low of Rs 310 in the month of May 2024.

At 12:48 PM IST, the shares of the company were trading at Rs 394.80, up by 3.54 per cent.

RBI Impact

Effective from March 15, 2024, the RBI imposed ban on Paytm Payment Bank, restricting the bank from accepting deposits, credit transactions, or top-ups in any customer accounts, wallets, and FASTags.

This ban added to a significant challenge to the company and a reduction in paytm's sales employees headcount, a decrease by about 3,500 to 36,521 personnel in the March 2024 quarter.

This not only end there, this ban added a widening loss to the company, which reached Rs 550 crore in the January-March 2024 period, up from Rs 167.5 crore in the same period the previous year.

RECENT STORIES

Electricity KYC Update Scam: Telecom Department Takes Action Against 392 Mobile Handsets; 31,740...

Electricity KYC Update Scam: Telecom Department Takes Action Against 392 Mobile Handsets; 31,740...

Nvidia Becomes The Most Valuable Company In The World; Pips Microsoft & Apple

Nvidia Becomes The Most Valuable Company In The World; Pips Microsoft & Apple

India Stems Wealth Exodus Amid Robust Economic Development: Report

India Stems Wealth Exodus Amid Robust Economic Development: Report

Forgot Your UPI Pin? Know How To Reset And Enjoy Hassle-free Payments

Forgot Your UPI Pin? Know How To Reset And Enjoy Hassle-free Payments

I’m Proud Of Our Boeing People: Outgoing CEO David Calhoun Defends Dubious Safety Records

I’m Proud Of Our Boeing People: Outgoing CEO David Calhoun Defends Dubious Safety Records