The digital payments and financial services company, Paytm is laying off an undisclosed number of employees on June 10, as a part of 'restructuring' efforts by the company.

Fintech firm One97 Communications (OCL), the parent company of Paytm, said in a statement, news agency PTI reported. 

The company claims that it would be providing outplacement support to ensure a smooth transition for employees who face the layoffs.

"One97 Communications Limited (OCL) is providing outplacement support to employees who have resigned as a part of the restructuring efforts by the company. The company's human resource teams are actively collaborating with over 30 companies that are currently hiring, and providing assistance to employees who have opted to share their information, facilitating their immediate outplacement," the company stated.

"Paytm is also disbursing bonuses which were due to employees, ensuring fairness and transparency in the process," the statement added.

The statement claimed that the number of employees in Paytm sales division dropped by approximately 3,500, bringing the total headcount to 36,521 in the March 2024 quarter.

According the company, this drop in headcount is primarily attributed to the Reserve Bank of India's (RBI) ban on services provided by Paytm Payments Bank.

Earlier, the RBI banned several services of Paytm Payments Bank barring the Paytm associate from accepting deposits, credit transactions or top-ups in any customer accounts, wallets, and FASTags, starting from March 15, citing non-compliance issues and supervisory concerns.

Reportedly the ban led to a widened loss of Rs 550 crore to Paytm, in the January-March 2024 period, compared to a loss of Rs 167.5 crore in the same period a year ago.