Team Blitz India
NEW DELHI: Digital payments firm Paytm might cut around 15-20 per cent of its workforce in the current financial year. During FY23, the company maintained an average of 32,798 employees on its rolls, with 29,503 actively engaged. The average cost per employee stood at Rs 7,87,000. In FY24, the total expenditure surged by 34 per cent year-on-year (Y-o-Y) to Rs 3,124 crore, and the average employee cost is estimated to have increased to Rs 10,60,000, according to a report by theFinancial Express.
In light of mounting losses, Paytm has initiated an employee cost reduction plan targeting to save Rs 400-500 crore. This could potentially result in a reduction of 5,000-6,300 employees.
And the process of downsizing is already underway. Reports indicate that over 1,000 employees were laid off across various departments in December last year, as part of streamlining operations and curtail costs. The exact number of employees in FY24 remains undisclosed, the report said.
