Shares of One97 Communications Limited, the Noida-based parent of fintech major Paytm, witnessed a dip of nearly 2% in early trade on Tuesday, with the decline coming on the back of job cuts undertaken by the company, which described the move as a ‘slight reduction’ to its workforce.
Around 11 am, One97 shares fell by over 1.5% on the National Stock Exchange (NSE), as per India Today.
Stock markets reopened on Tuesday after a 3-day break, including Christmas on the previous day.
Paytm layoffs
While One97 has confirmed the layoffs, the company did not specify the number of employees who have been relieved of their duties. It, however, denied media reports that stated that ‘more than 1000’ jobs have been cut.
“We will be able to save 10-15% in employee costs as artificial intelligence (AI) has delivered more than we expected it to. Additionally, we constantly evaluate cases of non-performance throughout the year. Insurance and Wealth will be a logical expansion of our platform, in continuation of our focus on the existing businesses,” a spokesperson from the Paytm owner said in a statement.
Founded by Vijay Shekhar Sharma, One97 laid off around 20,000 staffers in 2022, and 4080 workers in 2021, according to Entrackr.
