Fintech company Paytm has warned of potential job cuts after reporting weak earnings. One97 Communications, which runs Paytm, reported a net loss of 550 crore rupees in Q4 of FY24, which is three times higher than Q4 FY23.
The company's revenues were down 20% and margins also took a hit due to RBI's ban on Paytm Payments Bank on Jan 31st.
In a letter to shareholders, Paytm founder and CEO Vijay Shekhar Sharma highlighted the near-term financial impact on revenue and profitability due to disruptions faced in Q4 following the RBI's ban on PPBL.
The letter also mentioned the company's focus on significant cost efficiencies, including a leaner organizational structure, driven by Artificial Intelligence capabilities and a focus on core business.
While investments will continue, the firm will also take steps to cut employee costs, Sharma said, adding that these measures could save up to Rs 400-500 crore annually.
On January 31st, RBI had asked PPBL to stop offering banking services beginning March 15th. This was due to concerns over non-compliance to regulatory guidelines.