A multinational financial technology company, Paytm plans to cut 5,000-6,300 jobs amid the crisis. The company may cut around 15-20 percent of its workforce.
In recent years, employee costs have increased due to investments primarily in technology, merchant sales, and financial services.
For the coming year, while Paytm continues to invest in the merchant sales team as well as risk and compliance functions, the company expects reductions in other employee costs. It is expected that annualized people cost savings of Rs. 400 – Rs. 500 Cr.
In the financial year 2023, the company had an average of 32,798 on-roll employees, with 29,503 active on-roll. The average cost per employee stood at Rs 7.87 lakh.
During Q4 FY 2024, Indirect Expenses (excluding ESOP cost) increased 13% YoY to Rs. 1,186 Cr. However, they have declined 9% on a QoQ on account of employee cost reduction and temporary reduction in marketing costs as we have stopped direct user onboarding since February 2024.
Indirect expenses have increased to 59% in Q4 FY 2024, from 49% in Q4 FY 2023 and 46% in Q3 FY 2024, largely due to a decline in revenue due to disruption.
In the last few years, employee costs have grown due to investments primarily in technology, merchant sales, and financial services.
For the coming year, while the company will continue to invest in the merchant sales team, risk, and compliance functions, the company expects a reduction in other employee costs.
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Recently, the widens leadership team has been working directly with Paytm CEO and senior management for the next phase of growth. Strengthens succession planning by empowering next-generation leaders.
- Bhavesh Gupta transitions to an advisory role, offering guidance for Paytm’s growth initiatives.
- Varun Sridhar transitions to Chief Executive Officer of Paytm Services Private Limited, focusing on the distribution of mutual funds and wealth management products.
- Appoints Rakesh Singh as the new Chief Executive Officer of Paytm Money.
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