One 97 Communications Limited (OCL), the parent company of digital payments firm Paytm, is restructuring and ensuring a fair transition for employees as per their appointment letters. The development comes amid reports of layoffs at the company.
Paytm has offered affected employees the option to resign first, giving them adequate time to decide and safeguarding their future employment prospects, instead of direct termination.
The company is also honouring full notice periods and processing final salaries according to industry norms.
Employees seeking early relief can opt for it, with full salaries paid for the notice period. Impacted employees are also prioritised for open positions within Paytm’s core business lines if their skills match.
Recent media reports indicated that Paytm has been providing outplacement support to affected employees though its partnerships with 30 hiring companies.
All the transitions are being managed by HR teams, with team managers present. Employees will receive variable pay and bonuses as part of their final settlements, and the company is also providing joining and retention bonuses as outlined in appointment letters.
Last week, Paytm issued a media advisory saying: "Reports of new layoffs at Paytm are speculative and misleading; 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. We kindly request all media to ensure accuracy by verifying details before publication," it added.
Since December last year, Paytm has focused on workforce efficiency through AI-led interventions.
In its FY24 earnings release, the company reiterated its focus on profitability and a leaner organisation by pruning non-core business lines.
Paytm has observed a positive growth trend in its payment GMV since April and expects meaningful improvement starting from Q2 FY25, with steady growth in operating metrics.
