Mass layoffs coming at Paytm; Thousands of employees will lose their jobs

 

Delhi: It is reported that the employees of the online payment system Paytm are in crisis. Financial Express reports that Paytm may lay off 5,000 to 6,300 employees as the parent company's losses increase. 

One97 Communications, the parent company of Paytm, is trying to reduce the number of employees as part of reducing costs. The company plans to cut 15-20 percent of its workforce. With this, 5000-6300 people will lose their jobs. One97 Communications expects to cut costs by Rs 400-500 crore by shedding employees. The company had an average of 32798 employees in the last financial year. Their average annual salary was Rs 7.87 lakh. But with a 34 percent increase in employee benefits including salary this financial year, the average annual salary has risen to 10.6 lakhs. The company has reportedly already started laying off employees to overcome the pressure. More than 1,000 employees were laid off last December. But One97 Communications has not released the exact figure of how many people are currently employed in the company. 

Paytm's parent company, One97 Communications, continues to face financial crisis. The company's March quarter loss rose to Rs 550 crore. The company's loss for the same period last year was Rs 169 crore. The company's fourth-quarter results were significantly affected by issues with UPI transactions and the ban on Paytm Payments Bank, reports said. The company's revenue declined by 3 per cent to Rs 2,267 crore in the current quarter from Rs 2,334 crore in the corresponding quarter last fiscal.