BENGALURU: As part of a restructuring initiative, many employees of One97 Communications, the parent company of Paytm, might lose jobs.
Though the company announced the restructuring exercise long back, it clarified on Monday that reports of new layoffs at Paytm are speculative and misleading. The company did not announce the number of employees that are being fired.
“No new developments have occurred. As outlined in our FY24 earnings, we continue to optimise our cost structure and enhance AI capabilities, focusing on core business. We handle all employee transitions with fairness, including providing full notice periods, due bonuses, and outplacement support, collaborating with over 30 organisations,” it said in a statement.
According to reports, the company also said that it is providing outplacement support to employees that have resigned as part of the restructuring efforts by the company. It is also disbursing bonuses that were due to employees, ensuring fairness and transparency in the process.
Recently, in a letter to shareholders, Vijay Shekhar Sharma, founder and CEO said, “Led by capabilities of AI and focussing on core business, we are also working on significant cost efficiencies including leaner organisation structure.” He added, “Our ongoing experiments and learnings in AI promise to revolutionise customer and merchant care for the financial industry, while also unlocking new avenues for revenue generation and cost savings.” In FY24, the company reported revenue of `9,978 crore, 25% growth.
“Our Q4 FY 2024 results ere impacted by temporary disruption on account of UPI transition etc. and permanent disruption because of the PPBL embargo,” the company had said.