Fintech company One 97 Communications Ltd (Paytm) announced its results for the quarter ended March of FY24 on Thursday, May 23.
The company has reported a net loss of Rs 550 crore in Q4FY24 after the company’s margins took a hit post-RBI’s crippling ban on its associate company, Paytm Payments Bank Limited (PPBL) on January 31.
Paytm founder Vijay Shekhar Sharma has hinted at job cuts in his statement to shareholders. Vijay Shekhar Sharma has admitted that he had anticipated the RBI ban on PPBL to impact the company’s
revenue and profitability in Q4 FY24.He has assured that many of the company’s payment interfaces and loan products are likely to restart or are in the process of starting soon. The founder mentioned that the company is looking at optimising its cost structure vis-a-vis the creation of a leaner organisation structure and pruning non-core businesses.
“We are optimising our cost structure, leveraging AI capabilities, and focusing on our core business will enable us to achieve significant cost efficiencies. This includes creating a leaner organisation structure and pruning non-core businesses,” wrote Vijay Shekhar Sharma in his letter to shareholders.
Paytm plans to continue rewarding its high-performing talent through promotions to leadership roles and by welcoming new senior executives for its growth. The company also talked about the increased employee cost due to investments primarily in technology, merchant sales and financial services. The company plans to deal with this increase via its decision to reduce employment cost while continuing its investment in the merchant sales team and risk & compliance function. It expects to save Rs 400 to 500 crore this year by doing so.
Paytm lost approximately 4 million (40 lakh) users during the March quarter.
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