The beleaguered Indian fintech company Paytm is reportedly planning to lay off close 6,000 of its employees, according to a report from the Financial Express. The company's fortunes has been in doldrums since the beginning of 2024.
1000 Employees Laid Off in 2023
According to the report, due to its streak of losses, the entity is looking to stabilise by resorting to some cost-cutting. This exercise may save the company an amount in excess of Rs 500 crore.
This would mark the second such monumental batch of layoffs, as the once admired company fired 1,000 of its employees in December.
The company hit dire straits when in February 2024, the Reserve Bank of India took action against its banking wing, Paytm Payment Bank for violating norms and non-compliance to regulatory policies.
The company, which recently announced ist quarterly results, exhibited how badly the company's well-being has been impacted. The entity which was co-founded by Vijay Shekhar Sharma ended the quarter with the loss of a concerning Rs 549.6 crore.
The misfortunes for the company only doubled in the span of three months, as in the previous quarter or the third quarter of the fiscal year, the company reported losses of Rs 220 crore. | Representative Image
Company Shares Continue To Dip
In a statement to news agency ANI, the company said, "We are transforming our operations with AI-powered automation to drive efficiency, eliminating repetitive tasks and roles to drive efficiency across growth and costs, resulting in a slight reduction in our workforce in operations and marketing. We will be able to save 10–15 per cent in employee costs as AI has delivered more than we expected it to. Additionally, we constantly evaluate cases of non-performance throughout the year.”
The misfortunes for the company only doubled in the span of three months, as in the previous quarter or the third quarter of the fiscal year, the company reported losses of Rs 220 crore. In addition, the cumulative revenue generated also dropped by a significant 3 per cent to a total of Rs 2,267 crore.
The company shares have also plummeted 2.65 per cent, just in the first three hours of the day's trade on Tuesday, May 28. In fact, the share price of the company has fallen 8.07 per cent, just in the past month. Currently the price of each individual stands at Rs 347.25.
