Paytm’s parent company, One97 Communications, reduced its workforce by approximately 4,500 employees in fiscal year 2024–25, representing about 15–20% of its headcount, according to reports. This move is part of a broader cost-saving restructure amid pressure from regulatory restrictions and slower revenue growth. The cuts were expected to save around ₹400–500 crore in employee costs.
Earlier in December 2023, Paytm initiated layoffs impacting over 1,000 employees, primarily from lending, operations, sales, and engineering teams, as part of the first wave in FY25. These initial layoffs affected at least 10% of its workforce.The company attributed this to AI-driven automation efforts aimed at reducing repetitive tasks by 10–15%.
Affected employees across departments—particularly operations and marketing—have raised concerns. Some allege informal termination processes, being asked to resign voluntarily, denial of severance, and reclaiming of joining/retention bonuses. Complaints were filed with India’s labour ministry over allegedly unlawful termination procedures.
According to employee accounts on Reddit, layoffs extended beyond operations and marketing into engineering and QA teams—especially in the postpaid lending (M‑loyal) division. Some engineers claimed they were placed on performance improvement plans or pressured to resign
Despite these reductions, Paytm signaled intent to expand its core payments and financial services vertical—planning to hire up to 15,000 employees in areas like insurance, wealth management, and merchant services.
Key Takeaways
- Paytm cut around 4,500 jobs in FY25—about 15–20% of its workforce.
- Over 1,000 employees laid off in December 2023 kickstarted the restructuring.
- Layoffs targeted non-core functions; lending and operations heavily impacted.
- Staff cited informal termination, missing severance, and pressure to resign voluntarily.
- Paytm aims to hire ~15,000 workers in its core payments and financial services segments.
Why It Matters
The restructuring reflects heightened pressure following RBI restrictions on Paytm Payments Bank, tightening margins in lending, and the push to automate routine workflows. While cost reduction is a priority, critics warn that unethical termination practices and lack of transparency may harm employer reputation. The plan to hire aggressively in core businesses suggests a pivot toward profitability and strategic growth.
