Paytm May Cut 5,000-6,300 Roles

Digital payments firm Paytm is planning to cut approximately 15-20 per cent of its workforce this financial year to reduce employee costs. In FY23, the company had an average of 32,798 employees, with 29,503 actively engaged. The average cost per employee was Rs 7,87,000. According to a Financial Express report, total expenditure in FY24 increased by 34 per cent year-on-year to Rs 3,124 crore, with the average employee cost rising to an estimated Rs 10,60,000.

To address mounting losses, Paytm aims to save Rs 400-500 crore through an employee cost reduction plan, potentially affecting 5,000-6,300 employees. The downsizing process has already begun, with reports indicating that over 1,000 employees were laid off across various departments in December last year to streamline operations and reduce costs. The exact number of employees in FY24 has not been disclosed.

In an investor presentation, Paytm stated, “In recent years, our employee costs have increased due to investments primarily in technology, merchant sales, and financial services. For the coming year, while we continue to invest in the merchant sales team, as well as risk and compliance functions, we expect reductions in other employee costs.”

The company is optimistic that streamlining its cost structure, leveraging artificial intelligence capabilities, and focusing on core operations will result in significant cost savings. Despite the cuts, Paytm remains dedicated to advancing high-performing individuals into leadership roles and recruiting new senior executives to drive growth.