Paytm has laid off over 10% of its employees within fiscal year 2024-2025 (FY25), impacting around 4,600 of the workforce. The move has reduced the company’s expenses by ₹650 crore as Paytm goes through a restructuring to streamline operations and focus on core growth areas.
As per Paytm’s annual report for FY25, the company ended the year at an on-roll headcount of 39,368, significantly less than the employee count of 43,960 in FY24. Among the remaining employees, 32,614 are part of the sales functions.
The company’s employee costs were reduced by 21% year-on-year, excluding stock-based compensation. In FY25, Payt’s employee cost was ₹2,473 crore, while it was at ₹3,124 crore in FY24.
“This was driven by our continued efforts to create a leaner organisation structure and increasing productivity leveraging technology, while we continue to invest in our sales team,” Paytm stated.
In March 2024, the Reserve Bank of India (RBI) issued directives that halted the operation of Paytm Payments Bank, significantly impacting Paytm’s business. The company underwent several rounds of layoffs and even faced complaints with the labour ministry in June 2024, which was resolved in July 2024.
“The representative of the management of Paytm appeared before the regional labour commissioner, Bengaluru, on Wednesday and agreed not to recover the joining bonus and to pay the notice period payment to the employee,” the Ministry of Labour and Employment had shared.