As losses increased, Paytm fired more employees, providing jobs elsewhere, know the status of the stock
Fintech company One97 Communications has laid off employees. One97 Communications owns Paytm. The company claimed in a statement that it is providing ‘outplacement’ assistance to the employees for their smooth transfer. However, the statement did not disclose the number of employees who have been retrenched. The number of Paytm employees (sales) declined by about 3,500 quarter-on-quarter to 36,521 in the January-March 2024 quarter, mainly due to the ban on the services of Paytm Payments Bank by the Reserve Bank of India.
Paytm is helping in getting job elsewhere
The company said in a statement on Monday, “The company’s HR team is actively collaborating with more than 30 companies who are currently recruiting employees. “We are providing assistance to those employees who have chosen to share their information, thereby facilitating their immediate relocation.” Keeping in mind the interest of customers including merchants, the Reserve Bank of India had barred Paytm Payments Bank Limited (PPBL) from accepting deposits, credit transactions or top-ups in any customer account, wallet and Fastag with effect from March 15.
Loss increased to Rs 550 crore
Fintech company One97 Communications’ loss increased to Rs 550 crore in the fourth quarter of FY 2023-24. The company has written off investment of Rs 227 crore for 39 per cent stake in PPBL in the January-March quarter. Paytm founder and chief executive officer (CEO) Vijay Shekhar Sharma holds 51 percent stake in PPBL.
Stock rise
Paytm shares have seen a significant rise in early trading on Monday. Paytm shares today jumped 8.60 percent to Rs 414. However, later the momentum also subsided. The market cap of Paytm on BSE stood at Rs 25,174.21 crore.
