Paytm parent One97 Communications’ employee count come down by 4,500 in the FY25 and saved it Rs 650 crore, the company’s annual report published on August 6 shows.
Paytm had 44,000 employees on an average in FY24, which came down to 39,400 in FY25, which resulted in higher than the estimated savings of Rs 400-500 crore.
“Driven by our continued efforts to create a leaner organisation structure and increase productivity leveraging technology, while we continue to invest in our sales team to expand our distribution network,” Paytm said in its annual report.
The Noida-based company’s employee costs (excluding ESOP expense) decreased by 21 percent to Rs 2,473 crore in FY25 from Rs 3,124 crore in the previous year. However, FY25 employee expenditure is still higher than Rs 2,323 crore in FY23.
“We took some tough calls, pruned and sold businesses, and doubled down on our core of
payments, ensuring the preservation and growth of our cash reserves. This focus towards fundamentals has put us on a clear path toward sustainable growth and profitability,” CEO Vijay Shekhar Sharma said in a letter to shareholders.
Paytm reported its first-ever operational net profit of Rs 123 crore in the June quarter of this fiscal, aided by strong growth in lending and a 19 percent drop in expenses. Revenue rose 28 percent to Rs 1,918 crore, while EBITDA turned positive at Rs 72 crore.
While the company said it is investing in its sales team, its numbers also came down inFY25. In FY25 Paytm had 32,614 employees engaged in sales, down from 35,512 in the previous year.
The setback and recovery
The company was forced to reduce its overall expenses in FY25 after the Reserve Bank of India’s crippling restrictions on associate company Paytm Payments Bank Ltd (PPBL) in Q4 of FY23.
PPBL held various licences, which Paytm was using to distribute products such as wallets, Fastags, and savings account. It also disrupted Paytm’s lending business. Paytm’s topline shrunk and is yet to recover.
The December quarter of FY24 was Paytm’s high point in terms of revenue and other operational metrics.
The company recorded its highest quarterly revenue of Rs 3,000 crore during the third quarter of FY24. In the June quarter of FY26, it declined 30 percent to Rs 2,150 crore.
It forced the company to cut down its major expenses, which came down by 38 percent from Rs 3,200 crore in Q3FY25 to Rs 2,000 crore in the June quarter.
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