Paytm Parent One97 Faces Labour Ministry Scrutiny Over Layoffs: Report

One97 Communications, parent company of Paytm, faces labour ministry scrutiny over alleged forced terminations amidst restructuring triggered by RBI actions. Employees filed complaints, prompting an investigation. The company pledges support for affected staff and aims for a leaner structure amid strategic changes and regulatory challenges.
One97 Communications Faces Heat Over Alleged Unpaid Terminations at Paytm

One97 Communications Faces Heat Over Alleged Unpaid Terminations at Paytm (Image Source: iStockphoto)

One97 Communications, the parent company of Paytm, faces scrutiny from the labour ministry following allegations of forced terminations without pay. According to The Economic Times report, the Bengaluru Regional Labour Commissioner issued a notice after employees filed complaints, accusing the firm of breaching labour laws.
The notice mandates both One97 Communications' management and the complainants to present their cases with relevant records before the ministry. This development comes amid a significant restructuring effort at Paytm, triggered by the Reserve Bank of India's decision to ban Paytm Payments Bank services.
In response, a spokesperson for One97 Communications emphasized their commitment to supporting affected employees through the transition, ensuring fairness and transparency. The report added that they highlighted efforts to provide outplacement support to those impacted by the layoffs, reflecting the company's stance on maintaining a leaner organizational structure as part of their fiscal year 2024 strategy.
The company's recent financial disclosures indicated a reduction in its sales workforce by approximately 3,500 employees to 36,521 as of the March 2024 quarter, attributed partly to regulatory challenges and strategic realignment efforts. One97 Communications underscored its focus on profitability and efficiency through AI-driven initiatives and trimming non-core business lines.
One97 Communications, the parent company of Paytm, recently undertook undisclosed layoffs in June, asserting its commitment to aiding affected employees with outplacement support for a seamless transition.
During a public event, Paytm founder Vijay Shekhar Sharma responded to queries about senior-level departures, stating confidently, "All is well and all is rocking."
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