Vijay Shekhar Sharma breaks silence on why senior-level employees are leaving Paytm?

One97 Communications, the parent company of Paytm, underwent layoffs in June without specifying the number affected, offering outplacement support for transitioning employees. Despite questions about senior-level departures, founder Vijay Shekhar Sharma assured that all is well. Paytm’s sales team decreased by 3,500 to 36,521 personnel due to regulatory impacts from the RBI’s restrictions on Paytm Payments Bank.

Fintech firm One97 Communications, owner of the Paytm brand, laid off an undisclosed number of employees in June and claimed that it was providing outplacement support for their smooth transition.

During an event, Paytm founder Vijay Shekhar Sharma on Saturday when asked why senior-level employees are leaving Paytm, said, “All is well and all is rocking.”

Paytm’s sales employee headcount in the March 2024 quarter dropped by about 3,500 to 36,521 personnel on a quarter-on-quarter basis, mainly due to the impact of the Reserve Bank of India’s ban on services of Paytm Payments Bank.

“The company’s human resource teams are actively collaborating with over 30 companies that are currently hiring, and providing assistance to employees who have opted to share their information, facilitating their immediate outplacement,” the company said last month.

The Reserve Bank of India (RBI) had barred Paytm Payments Bank Limited (PPBL), an associate of Paytm, from accepting deposits, credit transactions, or top-ups in any customer accounts, wallets, and FASTags, keeping in view the interest of customers, including merchants from March 15 onwards.

The company had posted a loss of Rs 167.5 crore in the same period a year ago.

“As part of its FY24 earnings release, One97 Communications stated that it will be pruning its non-core business lines, and will continue its efforts to maintain a leaner organization structure through AI-led interventions. The company has been actively working toward driving profitability, in line with its guidance,” a company statement said earlier.