The company is also facing major challenges due to strict restrictions imposed by the Reserve Bank of India (RBI).
MUMBAI: One97 Communications, the operating company of Paytm, reported increased losses for the fourth quarter (January-March) of the financial year 2023-24. Revenues also declined by 3 percent on an annual basis. Company executives fear that losses will further widen in the first quarter (April-June) of the 2024-25 financial year. To mitigate this, Paytm plans to lay off a significant number of employees to reduce operating expenses.
The company is also facing major challenges due to strict restrictions imposed by the Reserve Bank of India (RBI). According to news agency sources, One97 Communications aims to cut the financial expenses incurred by its employees in the current financial year. The company plans to reduce its total workforce by around 15-20 percent in the coming days, potentially affecting 5,000 to 6,000 employees. Through this layoff, Paytm aims to save approximately Rs 400 to 500 crore.
In the financial year 2022-23, the organization had 32,798 employees on its payroll, with 29,503 actively working in the company. The average expenditure per employee's salary was Rs 7.87 lakh. Total employee expenditure increased by 34 percent to Rs 3,124 crore in the financial year 2023-24, and the average cost per employee rose to Rs 10.6 lakh. Consequently, the company is spending a substantial amount on employee salaries.
According to a source, Paytm has already initiated the layoff process. In December 2023, the company laid off more than 1,000 workers to cut costs.
MUMBAI: One97 Communications, the operating company of Paytm, reported increased losses for the fourth quarter (January-March) of the financial year 2023-24. Revenues also declined by 3 percent on an annual basis. Company executives fear that losses will further widen in the first quarter (April-June) of the 2024-25 financial year. To mitigate this, Paytm plans to lay off a significant number of employees to reduce operating expenses.
The company is also facing major challenges due to strict restrictions imposed by the Reserve Bank of India (RBI). According to news agency sources, One97 Communications aims to cut the financial expenses incurred by its employees in the current financial year. The company plans to reduce its total workforce by around 15-20 percent in the coming days, potentially affecting 5,000 to 6,000 employees. Through this layoff, Paytm aims to save approximately Rs 400 to 500 crore.
In the financial year 2022-23, the organization had 32,798 employees on its payroll, with 29,503 actively working in the company. The average expenditure per employee's salary was Rs 7.87 lakh. Total employee expenditure increased by 34 percent to Rs 3,124 crore in the financial year 2023-24, and the average cost per employee rose to Rs 10.6 lakh. Consequently, the company is spending a substantial amount on employee salaries.
According to a source, Paytm has already initiated the layoff process. In December 2023, the company laid off more than 1,000 workers to cut costs.
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